MGM’s Regional Casinos Help Make Up for Sluggishness in Vegas

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.

Key Insights

  • 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.

Market Reaction

  • Shares of MGM were little changed in extended trading. They have gained 33% this year through Wednesday’s close in New York.

Get More

  • Read the statement.
  • Link to Bloomberg estimates.

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.