MGM’s Regional Casinos Help Make Up for Sluggishness in Vegas
(Bloomberg) -- MGM Resorts International reported a smaller-than-expected loss in the first quarter, with its regional properties helping make up for slower results in Nevada.
- The company, the largest operator of casinos on the Las Vegas Strip, posted a loss of 68 cents a share, excluding some items. That was narrower than the 84-cent loss projected by analysts. Revenue was down 27% to $1.65 billion, but that too beat expectations.
- See details here.
- Like other casino operators, MGM has been hit hard by the coronavirus pandemic, which crimped leisure travel and shut down its lucrative convention business. Revenue in Las Vegas fell 52% to $545 million, the company said.
- With fewer customers taking big trips to gamble, regional properties performed better. MGM resorts in areas such as Maryland and Michigan increased earnings by 59% to $242 million. Betting revenue rose and cost-cutting initiatives both helped boost results.
- Sales in Macau, the world’s biggest gambling market, rose 9% to $296 million, and the company earned a small profit of $4.78 million there.
- Shares of MGM were little changed in extended trading. They have gained 33% this year through Wednesday’s close in New York.
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- Link to Bloomberg estimates.
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