MGM Resorts International reported an operating loss of $247 million for the quarter ended March 31.
“We are pleased with the meaningful progress we’ve made on multiple fronts this quarter,” said Bill Hornbuckle, CEO/president, MGM Resorts International. “Consumer demand strengthened at our domestic properties, and the significant changes we’ve made to our operating model have positioned us to capitalize on the recovery. Our regional properties achieved record first-quarter adjusted property EBITDAR and adjusted property EBITDAR margins. Las Vegas operating results improved sequentially, leisure demand is improving, and we now have a tangible path to bring conventions and entertainment back at scale. MGM China continued to outperform the broader Macau market’s gradual pace of recovery.”
“Our robust liquidity position provides us with significant flexibility amid an improving operational backdrop,” said Jonathan Halkyard, CFO/treasurer, MGM Resorts. “As such, we have begun to return capital to shareholders through share repurchases during the first quarter. Going forward, we will be disciplined in allocating our capital by maintaining a strong balance sheet, pursuing targeted growth opportunities and returning cash to shareholders.”
First-quarter highlights:
- Consolidated net revenues of $1.6 billion, a decrease of 27% compared to the prior year quarter. While the prior year quarter was negatively affected by property closures for a portion of the quarter, the current quarter was negatively affected by midweek property and hotel closures, lower business volume and travel activity and ongoing operational restrictions due to the pandemic primarily at its Las Vegas Strip Resorts.
- Consolidated operating loss was $247 million compared to consolidated operating income of $1.3 billion in the prior year quarter, which included a $1.5 billion gain related to the MGM Grand Las Vegas and Mandalay Bay real estate transaction.
- Net loss attributable to MGM Resorts of $332 million compared to net income attributable to MGM Resorts of $807 million in the prior year quarter, which included the $1.5 billion gain discussed above.
- Diluted loss per share of $0.69 in the current quarter compared to diluted earnings per share of $1.64 in the prior-year quarter.