Supplier News
US – MGM reports best US results since the recession
By Phil - 4 August 2016
Despite the continuing decline in Macau, MGM Resorts posted better second quarter results than predicted with revenues falling by 4.8 per cent to $2.27bn from $2.39bn.
Most of the increase was generated by the sale of The Shops at Crystals adding $406m in profit. The results coming out of the United States were actually the company’s best since the start of the recession.
MGM China’s revenue for the quarter fell by 19 per cent to $452m with VIP table games dropping by 33 per cent and mass gaming tables falling by three per cent.
Net revenues at the company’s domestic resorts decreased one per cent compared to the prior year quarter, but increased one per cent excluding Circus Circus Reno, Railroad Pass, and the company’s properties in Jean Nevada, which were sold during 2015.
Jim Murren, Chairman & CEO of MGM Resorts, said: “I am incredibly proud of the concerted effort of our talented executive teams and employees that produced our most profitable quarter in eight years at our domestic resorts. Our Profit Growth Plan drove our domestic resorts Adjusted Property EBITDA to grow an impressive 12 per cent and Adjusted Property EBITDA margins to improve by over 350 basis points, despite a record-breaking May last year. With a solid foundation of operational excellence and the continued strength in the Las Vegas market, in which we are the clear leader, we believe that MGM Resorts is well-positioned to further improve our financial strength to deliver sustainable value to our shareholders.”
CityCenter’s net revenues related to resorts operations were $287m compared to $295m in the prior year quarter.
MGM and Dubai World’s Infinity World Development Corp reached a deal to sell the Crystals shopping mall to Simon Property Group and Invesco for about $1.1bn. The 324,000-square-foot luxury shopping center is part of the giant CityCenter project.
