MGM Resorts International Soars in Q3
One of the best known casino operators in the world, MGM Resorts International, released their quarterly report for 3 months ending September 30. The company’s results show major profits and rise in revenues across the board. This quarter is said to be the biggest for the company in its history, in terms of net revenue generated domestically.
A year-to-year analysis shows that net revenue is up by 10.5% to $2.5 billion compared to $2.3 billion, generated last year. Domestic properties generated over $1.9 billion this quarter. The operator owns and runs 13 establishments in the US and one in Macau. A second casino was expected to open in Macau, but the launch date has been postponed to next year.
Income generated has seen the most increase compared to last year. Operating income soared to a remarkable $712.8 million, from $297.4 million last year. Overall net income rose to a whopping $561.3 million, a substantial increase compared to $94.7 million in 2015. Adjusted property EBITDA was $753.9 million in the last quarter, up from $602.5 million in 2015.
As a result of the increase in revenue, shares of the company rose an estimated 5% on the stock market. The acquisition of the Borgata Hotel Casino and Spa along with the related deals following it, played a major role in the increased revenue in addition to the growth at other domestic organizations. A reported $151-million was generated by Borgata in the last quarter. The company was acquired by MGM in August.
China seems to be the only downfall as revenues fell 6% to $500 million. The crackdown on corruption by the Chinese government is the alleged reason for the drop in VIP revenues and floor table revenues in Macau. Domestic operations continue to strengthen as they accounted for an adjusted property EBITDA of $570.2 million.
MGM CEO, Jim Murren, noted that it was a “strong quarter” for the company. He went to say that the company will continue improving it’s expansion and overall growth. 2 more domestic resorts are in the works and are set to be revealed by the end of the year.
