MGM Resorts International has published its Q1 results for the period ended March 31, 2019, showing consolidated net revenues ahead 13% compared to the prior year quarter to $3.2bn. Consolidated operating income increased 3% year-on-year to $370m.
Net income attributable to MGM Resorts was $31m, compared to $223m year-on-year. Consolidated adjusted EBITDA increased 5% to $740m in the current quarter compared to $701m in the prior year quarter.
“The first quarter came in slightly better than our expectations with consolidated net revenues up by 13% and adjusted EBITDA up 5%,” said Jim Murren, Chairman and CEO. “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. We remain focused on achieving our 2020 targets of $3.6bn to $3.9bn 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.”
Headline figures:
- Consolidated net revenues increased 13% compared to the prior year quarter to $3.2bn;
- Consolidated operating income increased 3% compared to the prior year quarter to $370m;
- Net income attributable to MGM Resorts of $31m, compared to net income attributable to MGM Resorts of $223m in the prior year quarter;
Las Vegas Strip Resorts
- Net revenues of $1.4bn in both the current and the prior year quarters; and
- Adjusted Property EBITDA of $404m, a 10% decrease compared to $449m in the prior year quarter, due primarily to a decrease in casino revenue, and adjusted property EBITDA margin of 28.3%, a 311 basis point decrease compared to the prior year quarter.
Regional Operations
- Net revenues increased 21% to $804m including $78m in contributions from the opening of MGM Springfield on August 24, 2018 and $37m in contributions from the acquisition of Empire City Casino on January 29, 2019; and
- Adjusted property EBITDA of $207m, a 24% increase compared to the prior year quarter.
