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Mar 31, 2020
MGM Q1 2020 Earnings Report
MGM's financial performance was negatively impacted by the COVID-19 pandemic, leading to property closures and revenue decline.
Key Takeaways
MGM Resorts International reported a 29% decrease in consolidated net revenues to $2.3 billion for the first quarter of 2020, primarily due to the temporary suspension of casino operations and travel restrictions. Despite the revenue decline, consolidated operating income increased to $1.3 billion, driven by a $1.5 billion gain from real estate transactions. The company is focused on managing cash outflows and maintaining a strong liquidity position during the crisis.
Consolidated net revenues decreased by 29% year-over-year to $2.3 billion due to COVID-19 impacts.
Consolidated operating income increased to $1.3 billion, including a $1.5 billion gain from real estate transactions.
Net income attributable to MGM Resorts was $807 million, compared to $31 million in the prior year quarter.
Adjusted diluted earnings per share was a loss of $0.45, compared to earnings of $0.14 in the prior year quarter.
Revenue by Segment
Forward Guidance
MGM Resorts is focused on maintaining a strong liquidity position and managing cash outflows during the COVID-19 crisis. The company is proactively reducing cash outflows and has access to additional liquidity through various measures.
Positive Outlook
- Strong liquidity position maintained.
- Proactive reduction of cash outflows to $270 million per month during closures.
- Access to $1.4 billion of additional liquidity upon redemption of operating partnership units in MGP.
- Recent $750 million senior notes offering to bolster liquidity.
- Focus on long-term strategic initiatives, including Japan, Macau, and sports betting.
Challenges Ahead
- Uncertainty regarding the opening dates of domestic properties.
- Material negative impact on first quarter results due to property closures.
- Continued travel restrictions affecting operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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