US – National Harbour helps boost MGM’s 2016 revenuesBy Phil - 21 February 2017
Las Vegas giant MGM Resorts reported a 17 per cent revenue surge in the fourth-quarter of 2016 compared to the previous year thanks to the launch of MGM National harbour and a marked improvement in the fortunes of its Las Vegas casino estate.
For the year as a whole, net revenues of $9.5bn and domestic resorts net revenues of $7.1bn, brought a nine per cent increase over the prior year and a four per cent increase on a same-store basis.
The fourth quarter saw revenues of $1.8bn at the company’s domestic resorts, marking a 17 per cent increase over the prior year quarter, and a two per cent increase on a same-store basis, excluding contributions from Borgata which the company began consolidating in August 2016, MGM National Harbor which opened in December of 2016, and Circus Circus Reno, which the company sold in 2015.
“In 2016, MGM Resorts produced diluted earnings per share of $1.92 and delivered the best same-store domestic Adjusted Property EBITDA and Adjusted Property EBITDA margins in nine years. The achievement of key financial and strategic milestones demonstrates our continued focus on driving profitability and shareholder value, strengthening our balance sheet, and further positioning MGM Resorts as a leading entertainment and destination-resort company,” said Jim Murren, Chairman & CEO of MGM Resorts. “We are excited about the outlook for 2017, including the full year contributions from MGM National Harbor and Borgata, the continued favourable Las Vegas dynamics supported by our investments including T-Mobile Arena and the Park Theater, the opening of MGM Cotai in Macau, and our persistent drive for continuous improvement throughout all aspects of our Company.”
The year saw the successful creation and $1.2bn initial public offering of MGM Growth Properties, a premier triple net lease REIT, which priced at the high end of the filing range and has since achieved material share price appreciation, underscoring the significant value in the company’s real estate assets.
CityCenter sold off The Shops at Crystals for $1.1bn resulting in a $540m boost to MGM Resorts, it opened the highly anticipated MGM National Harbor in Maryland and increased its ownership in MGM China ownership to approximately 56 per cent.
MGM National Harbor has been a runaway success for MGM becoming Maryland’s top revenue-earning casino in its first full calendar month.
It generated $48,828,135 from its 3,237 slot machines and 165 table games in January, having officially opened on December 8, 2016.
It is hosting its first boxing matches in April, including a fight between two-time Olympic gold medalist Vasyl Lomachenko from Ukraine and New Jersey born Jason Sosa.
The fights will be held at The Theater at MGM National Harbor, which can hold up to 4,000 spectators.