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US – MGM reports strong start to 2017

By - 8 May 2017

MGM Resorts has reported strong start to 2017 with net revenues increasing by 29 per cent over the prior year quarter at the company’s domestic resorts to $2.1bn.

Operating income of $477m at the company’s domestic resorts, represented a 31 per cent increase over the prior year quarter.

“MGM Resorts had a strong start to the year, as evidenced by our first quarter diluted earnings per share which tripled last year’s results, double digit same-store Adjusted Property EBITDA growth at our domestic resorts, record results at CityCenter and solid performance at MGM China. MGM National Harbor and Borgata, our newest additions on the East Coast, are leading their respective markets, and we continue to work toward expanding our footprint in Macau with the opening of MGM Cotai later this year,” said Jim Murren, Chairman & CEO of MGM Resorts. “Every year, we take steps to further this Company as an innovative market leader positioned for operational strength, financial flexibility, and prudent growth. We remain focused on building upon this effort as we continue to execute on our strategies to profitably grow our Company and return value to our shareholders.”

Casino revenue for the first quarter of 2017 increased 50 per cent compared to the prior year quarter, due primarily to the acquisition of Borgata Hotel Casino and Spa (Borgata), the MGM National Harbor opening on December 8, 2016, and an increase in both table games and slots revenue. Casino revenue increased four per cent on a same-store basis compared to the prior year quarter. Table games revenues increased seven per cent on a same-store basis and slots revenue increased 2% on a same-store basis compared to the prior year quarter.

Mr. Murren added: “The company’s high operating efficiencies, a robust event calendar, and modestly favourable table games hold helped drive a very strong first quarter in Las Vegas contributing to 33 per cent Adjusted Property EBITDA margins at our Strip resorts. As we look to the second quarter, our underlying business remains strong, although we face a challenging comparison due to the Easter holiday shifting back into April as well as favourable second quarter 2016 table games hold. Based on these factors, we anticipate gaming revenues to be lower and our non-gaming revenues to be up year over year. We expect to grow Strip REVPAR by 1.5 per cent to 2.5 per cent. Despite the difficult table games hold comparison, we believe our Adjusted Property EBITDA margins will remain essentially flat at our Las Vegas Strip resorts, compared to the prior year quarter.”

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