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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.
MGM
MGM
MGM Revenue by Segment
Revenue by Segment
Las Vegas Strip Resorts Revenue
CapyFin.comRegional Operations Revenue
CapyFin.comMGM China Revenue
CapyFin.com 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.
- Temporary reduction of dividend to preserve liquidity.
- Decrease in consolidated net revenues by 29%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income