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Jun 30, 2020
MGM Q2 2020 Earnings Report
MGM's financial performance significantly impacted by temporary suspensions and operational restrictions due to the COVID-19 pandemic.
Key Takeaways
MGM Resorts International reported a significant decrease in consolidated net revenues, a consolidated operating loss, and a net loss attributable to MGM Resorts, primarily due to the temporary suspension of domestic casino operations and travel restrictions in Macau. The company focused on bolstering its liquidity position and managing expenses during the re-opening process.
Consolidated net revenues decreased by 91% compared to the prior year quarter, totaling $290 million.
Consolidated operating loss was $1.0 billion, a stark contrast to the $371 million operating income in the prior year quarter.
Net loss attributable to MGM Resorts was $857 million, compared to a net income of $43 million in the prior year quarter.
Domestic liquidity, excluding MGM China and MGP, stood at $4.8 billion.
Revenue by Segment
Forward Guidance
MGM believes the long term fundamentals of the business and the broader industry remain intact. However, the near term operating environment will remain challenging and unpredictable as COVID-19 case trends, health and safety protocols, and travel restrictions continue to heavily impact our business.
Positive Outlook
- The Company’s liquidity position remains strong.
- Domestic operations achieved better than expected results since opening, despite the challenging environment
- MGM 2020 plan and modifications to our operating model have directly contributed to our margin improvements during the period in which our properties were open.
- Integrated resort opportunity in Osaka
- Expanding our footprint in Macau
Challenges Ahead
- The near term operating environment will remain challenging and unpredictable as COVID-19 case trends
- Health and safety protocols continue to heavily impact our business.
- Travel restrictions continue to heavily impact our business.
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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