MGM Resorts International has posted its financial results for the second quarter ended June 30, 2019. They show consolidated net revenues increased 13% to $3.2bn year-on-year, with
consolidated operating income ahead 2% to $371m. The current quarter included $43m in restructuring costs directly related to the operating model component of the MGM 2020 Plan.
Net income attributable to MGM Resorts of $43m was down on the prior year quarter total of $124m. Consolidated adjusted EBITDA increased 9% to $756m compared to $695m in the prior year quarter.
Net revenues at the firm’s Las Vegas Strip resorts saw a 1% year-on-year increase to $1.5bn, while adjusted property EBITDA of $418m slowed by 4% year-on-year from $436m due, primarily, to a decrease in table games revenue.
In its regional operations net revenues climbed $202m, or 29%, year-on-year to $911m including $76m in net revenues from MGM Springfield, which opened last August, $55m in net revenues from Empire City Casino, which was acquired on January 29, 2019, and $68m in net revenues from MGM Northfield Park‘s operations, which was acquired from MGP on April 1, 2019.
Jim Murren, Chairman and CEO, commented: “We are pleased with our second quarter results, which were in line with our expectations. Our consolidated net revenues increased by 13% and consolidated adjusted EBITDA increased by 9%. Our Las Vegas Strip Resorts saw an increase in revenues by 1% with non-gaming revenues up 5% thanks to a robust performance across our rooms, food and beverage and entertainment segments.
“This offset a 12 percent decline in gaming revenues, which was approximately two thirds driven by lower table games hold year over year and approximately one third driven by lower baccarat volumes. We continue to benefit from our diversified portfolio driven by strong growth in our Regional Operations and the continued ramp of MGM Cotai.”
He added: “We have the best portfolio of gaming assets in the US with leading positions in most of our markets allowing us to outperform our competitors. We feel good about the remainder of 2019, given the strength in our convention bookings and entertainment calendar. In addition, we expect MGM 2020 will be an additional catalyst for second half earnings growth.
“Improvements to our operating model, through MGM 2020, also grant us better control over our fixed and variable costs, providing multiple levers to quickly respond to potential changes in business conditions. We are confident that we will achieve our 2020 targets of $3.6bn to $3.9bn in consolidated adjusted EBITDA and significant growth in free cash flow through continued ramp up at our newer properties and further progress in executing our MGM 2020 Plan.”
