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Dec 31, 2020

MGM Q4 2020 Earnings Report

MGM's Q4 2020 performance was impacted by the pandemic, resulting in revenue decline, but the company expressed confidence in long-term recovery and focused on cost efficiencies and growth in BetMGM.

Key Takeaways

MGM Resorts International reported a 53% decrease in consolidated net revenues to $1.5 billion for Q4 2020 compared to the prior year quarter. The company experienced a net loss attributable to MGM Resorts of $448 million, and a diluted loss per share of $0.92. Despite these challenges, the company remains confident in the long-term recovery of its business and is focused on cost efficiencies and the growth of BetMGM.

Consolidated net revenues decreased by 53% year-over-year to $1.5 billion due to the pandemic.

MGM China's net revenues decreased 58% compared to the prior year.

Las Vegas Strip Resorts net revenues decreased 66% compared to the prior year.

Regional Operations net revenues decreased 34% compared to the prior year.

Total Revenue
$1.49B
Previous year: $3.19B
-53.1%
EPS
-$0.9
Previous year: $0.08
-1225.0%
Las Vegas REVPAR
$52
Previous year: $150
-65.3%
Las Vegas ADR
$138
Previous year: $168
-17.9%
Las Vegas Occupancy
38%
Previous year: 89%
-57.3%
Gross Profit
$583M
Previous year: $1.29B
-54.7%
Cash and Equivalents
$5.1B
Previous year: $2.33B
+119.0%
Free Cash Flow
-$336M
Previous year: $198M
-269.9%
Total Assets
$36.5B
Previous year: $33.6B
+8.5%

MGM

MGM

MGM Revenue by Segment

Forward Guidance

MGM Resorts is focused on maintaining a strong balance sheet, driving the growth of BetMGM, and ensuring the safety and well-being of its teams and communities.

Positive Outlook

  • The Company remains confident in the long-term recovery of the Las Vegas and Macau markets.
  • The Company's liquidity at its domestic operations remains strong at $5.6 billion.
  • BetMGM continues to deliver on market share gains in the growing U.S. sports betting and iGaming market.
  • The company has strengthened its operational foundation through cost efficiencies that position it for sustainable growth.
  • MGM expects to be in 20 markets by the end of the year, and are very pleased with the January launches in Iowa, Michigan, and Virginia.

Challenges Ahead

  • Consolidated net revenues decreased 53% compared to the prior year quarter to $1.5 billion.
  • Consolidated operating loss was $364 million compared to consolidated operating income of $3.0 billion in the prior year quarter.
  • Net loss attributable to MGM Resorts of $448 million compared to net income attributable to MGM Resorts of $2.0 billion in the prior year quarter.
  • Diluted loss per share of $0.92 in the current quarter compared to diluted earnings per share of $3.91 in the prior year quarter.
  • Consolidated Adjusted EBITDAR of $97 million in the current quarter.

Revenue & Expenses

Visualization of income flow from segment revenue to net income