Despite having a net loss of $37.1m, MGM Q3 report still shows us that the gambling firm reported a 9% year-on-year increase in Q3 consolidated net revenue, to $3.3bn. Let’s take a look.
The results also showed that MGM’s Las Vegas Strip Resorts saw net revenue rise 4% to $1.5bn, while revenue from regional operations was up 20% to $935m, MGM China revenue increased 22% to $738m.
MGM Q3 Pleases CEO Murren
Despite these positive figures, consolidated operating income fell 42% to $238m, due to a non-cash impairment charge of $219m. This was related to Circus Circus Las Vegas.
Adjusted EBITDA also rose to $814m, a 14% rise. MGM CFO Corey Sanders emphasized the operator’s focus on achieving its 2020 targets.
Jim Murren, Chairman and CEO of MGM Resorts stated his satisfaction with the period.
“Our Las Vegas Strip Resorts saw an increase in revenue by 4%, with non-gaming revenues up 6% thanks to a robust performance in rooms and food and beverage.
“Gaming revenue at our Las Vegas Strip Resorts declined by 3%, due to ongoing weakness in Far East baccarat volumes, offset by increases in slots and domestic table games play.”
Murren walso said the recent sales of the Bellagio and Circus Circus Las Vegas’ real estate, to Blackstone Real Estate Income Trust, will “fortify” MGM’s balance sheet.
These two deals went through a couple of months ago, after the CEO said that MGM would never let go of the powerful properties. You can read up more about that at the latest online gambling news.