MGM Earnings Plummet In 1st Quarter

Company's CEO Sees NY-NY, Bellagio As First Properties To Reopen

Associated Press
May 01, 2020 - 5:23 am
Exterior photo of the MGM Grand Hotel/Casino June 30, 2005 in Las Vegas, Nevada

Ethan Miller/Getty Images

LAS VEGAS, NV (AP) - MGM Resorts International (MGM) on Thursday reported first-quarter earnings of $806.9 million. Consolidated net revenues decreased 29% compared to the prior year quarter to $2.3 billion, primarily driven by the temporary suspension of the Company's domestic and Macau casino operations and continued travel restrictions which resulted in a 63% decrease in net revenues at MGM China. 

The Las Vegas-based company said it had profit of $1.64 per share. Losses, adjusted for non-recurring gains, came to 45 cents per share.

The results missed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for a loss of 8 cents per share.

The casino and resort operator posted revenue of $2.25 billion in the period.

MGM shares have decreased 49% since the beginning of the year. In the final minutes of trading on Thursday, shares hit $16.82, a drop of 41% in the last 12 months.

"The year started strong with results ahead of expectations, however the COVID-19 pandemic resulted in the closure of our properties which had a material negative impact on our first quarter results," said Bill Hornbuckle, Acting CEO and President of MGM Resorts.

During a conference call Thursday, Hornbuckle said that it was most likely that the company would open two of their Strip properties first: New York New York, because of the lower number of rooms, and Bellagio to take on the high-end market.