BUSINESS

MGM Resorts 3Q financial Results

TAGs: financial results, Jim Murren, Kirby Garlitos, MGM Resorts

MGM Resorts International has reported a consolidated quarterly revenue of $2.23 billion in the last three months, a 1% year-one-year increase and a 2% improvement of its adjusted earnings before interest, taxation, depreciation and amortization (EBITDA).

MGM Resorts 3Q financial ResultsThe company’s diluted loss per share amounted to $20.3 million for the third quarter of 2014, or $0.04 per share. That’s  better than its performance a year ago when the company reported a loss of $22.3 million, or $0.05 per share.

Net revenue for MGM China Holdings Ltd. dropped 2% year on year to $794 million. The company’s MGM Macau casino reported losing 19% of VIP table games revenue but saw a 34% increase in revenue from mass market tables. The company indicated that the decrease in revenue from VIP tables were due to a 19% drop in turnover compared to the previous year quarter and a drop in hold percentage from 2.8% last year to 2.7% this year’s third quarter. However, volume from mass market tables spiked up 15% and hold percentage improved from 24% last year to 28% this year.

MGM China’s adjusted EBITDA came out at $214 million, 12% better than its numbers a year ago while its adjusted EBITDA margin moved up by 330 basis points compared to the prior year quarter to 26.9 percent. The company also posted a small increase in operating income this year at $140 million compared to last year’s $114 million number.

Meanwhile, its Las Vegas resorts posted a 3% improvement in top-line revenues despite posting a 6% decrease in adjusted EBITDA to $328 million, largely because of a decrease in the hold percentage of table games at its Vegas resorts.  Table games hold percentage in the third quarter of 2014 was 19.8% compared to 21.5% in the prior year quarter while slots revenue also decreased slightly at the company’s wholly owned domestic resorts compared to the prior year quarter but increased 1% at the its primary Las Vegas Strip resorts.

Moving forward, MGM Resorts Chairman and CEO Jim Murren maintained the company’s commitment to increase revenue and expand margins “while driving operating leverage in an improving market”. Murren also announced that the construction of MGM Cotai is on schedule and on budget in time for a fall 2016 opening.

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