MGM Resorts International yesterday ( 29th April 2019 ) posted their first quarter results for 2019 ( 1st Jan – 31st Mar ) which showed solid continued growth for the land based casino group.
Key points and notes of interest were the fact that the group’s net revenue increased by 13% compared to the prior year quarter to $3.2 billion. Whilst the group’s consolidated operating income increased 3% compared to the prior year quarter to $370 million.
Commenting about the results to investors, Jim Murren, Chairman and CEO of MGM Resorts International said: “The first quarter came in slightly better than our expectations with consolidated net revenues up by 13% and Adjusted EBITDA up 5%. “
“Our Las Vegas resorts experienced broad and diversified customer demand. Our non-gaming revenues grew by 4%. We had healthy gaming business outside of baccarat, but previously flagged factors such as a very strong baccarat business in the prior year period and a low win rate in the current period led to flat revenues and a 10% decrease in Adjusted Property EBITDA year over year.”
“Our Regional properties performed exceptionally well with 24% growth in Adjusted Property EBITDA, or 9% on a same store basis. MGM Grand Detroit, MGM National Harbor and our Mississippi properties had strong quarters. MGM Cotai continued to ramp and contributed to the 26% growth in Adjusted Property EBITDA at MGM China. During the quarter, we were very pleased to receive the extension to our Macau sub-concession to June 2022. We remain deeply committed to Macau’s continued evolution into an international leisure and tourism destination.”
With Murren continuing to add: “We remain focused on achieving our 2020 targets of $3.6 billionto $3.9 billion in consolidated Adjusted EBITDA and significant growth in free cash flow. Our strategy to achieve these goals includes the continued ramping up of MGM Cotai, Park MGM and MGM Springfield, and the implementation of the MGM 2020 Plan.”
“MGM 2020 is a company-wide initiative aimed at leveraging a more centralized organization to maximize profitability and lay the groundwork for the Company’s digital transformation to drive revenue growth. We are creating a streamlined, nimble organization that empowers leaders to make faster decisions. We are excited about our targeted growth opportunities in Japan, sports betting and interactive initiatives. At the same time, we are maintaining a disciplined approach to capital allocation and creating long term value for shareholders.”
MGM Resorts International also have an online casino offering which is licensed in the State of New Jersey, which goes by the name Play MGM.
