Things are almost back to normal inside MGM Resorts International a month after a gunman opened fire from one of its Las Vegas buildings and killed 59 people.
MGM Chief Executive Officer Jim Murren told investors during Wednesday’s earnings call that the series of cancellations in MGM Resorts International Grand Hotel & Casino in Las Vegas, Nevada has finally subsided while booking pace returned to normal.
But the impact of the Las Vegas shooting to MGM’s revenue has yet to be seen, especially since the deadly rampage that targeted concert goers happened a day after the third quarter reporting period.
Murren expects the cancellations and marketing suspensions in the wake of October 1 shooting are expected to weigh down fourth-quarter results.
“So, to give you some color around the fourth quarter. About half of our cancellations were isolated literally to the month of October. And as I said earlier, we’ve seen bookings improve, our business improve, here in November,” Murren said.
For now, investors may breathe a sigh of relief as MGM’s third quarter revenue of $2.83 billion topped analyst estimates of $2.76 billion while rising 12.3 percent year-on-year.
Revenue per available room, a key measure for hotels and resorts, rose 4 percent to $156 at the company’s Las Vegas Strip resorts. Investors rejoiced as shares of MGM climbed 5.1 percent to $33.06 in New York trading Wednesday – the largest gain since March 2016.
Casino revenue was also robust at 32 percent as the company continues to incorporate the Borgata Hotel Casino and Spa, which it purchased in August 2016, and MGM National Harbor opening in December 2016.
The only bad news that MGM reported was its operations in Macau.
Net revenues of MGM China dropped 6 per cent year-on-year to $471 million in the third quarter of 2017, although the results mark an increase of 5 percent from $449 million recorded in the previous quarter.
Murren noted the company remains “extremely confident about Macau’s long-term prospects and its evolution into Asia’s tourist and leisure capital.”