MGM Resorts counts COVID cost amid signs of recovery

MGM Resorts International recorded net revenues of $1.1bn in the three months to September 30, a 66 per cent drop against the same period in 2019.

The hardest hit properties were in Las Vegas and Macau, where flagship resorts were only partially open during the period and, even then, with footfall significantly down due to social distancing measures. 

Net revenues for MGM China were down a whopping 94 per cent year on year, to $47m while Vegas revenues dropped 68 per cent against Q3 2019, to $481m.  

In a statement, Bill Hornbuckle, CEO of MGM Resorts International, wrote: “The third quarter offered signs of stability and recovery driven by strength at our US regional operations. 

“We saw sequential improvement in all our markets and several of our regional properties delivered quarterly Adjusted Property EBITDAR records.

“We remain focused on responding to the pandemic with effective health and safety protocols. We have modified our operating model to adapt to the current environment and we are executing on our long-term growth initiatives, particularly in US sports betting and igaming, where BetMGM has gained significant momentum.”

BetMGM, a joint venture between MGM Resorts and GVC Holdings, offers US sports betting and online gaming via the BetMGM and partypoker brands.

Commenting on the update, Corey Sanders, Chief Financial Officer and Treasurer of MGM Resorts, said: “Our domestic liquidity, excluding [real-estate investment trust] MGP and MGM China, remained substantial at $4.5bn as the company worked diligently to significantly reduce our cash outflows during the third quarter.

“In October, we opportunistically issued an additional $750m in aggregate principal amount of senior notes at an attractive rate to further fortify our financial position.”