MGM Resorts (MGM) Earnings & Revenues Miss Estimates In Q2
Zacks Investment Research | Jul 25, 2019 10:04PM ET
MGM Resorts International (NYSE:MGM) reported second-quarter 2019 results, wherein earnings and revenues lagged the Zacks Consensus Estimate.
Adjusted earnings of 23 cents per share missed the consensus estimate of 25 cents and also declined 11.5% from that registered in the prior-year quarter.
Total revenues were $3,223.2 million, missing the consensus mark of $3,235 million but increased 13% year over year. This improvement was backed by robust performance of MGM China.
MGM China
MGM China’s net revenues increased 26% year over year to $706 million, owing to net revenue contribution of $316 million from MGM Cotai.
The opening of MGM Cotai facilitated a 36% year-over-year increase in Main floor table game wins. VIP table game wins increased 22% from the prior-year quarter, primarily driven by the opening of VIP junket rooms in September 2018 at MGM Cotai.
MGM China’s adjusted property EBITDA (earnings before interest, taxes and amortization) increased 43% to $171 million from $120 million in the prior-year quarter. Moreover, adjusted property EBITDA margin was at 24.2%, marking an increase of 280 basis points (bps) from the year-ago quarter figure.
Domestic Operations
MGM Resorts owns and operates several properties in Las Vegas. It also owns several assets in Mississippi and Michigan.
Net revenues at Las Vegas Strip Resorts were $1.5 billion, up 1% year over year. Meanwhile, adjusted property EBITDA decreased 4% year over year while EBITDA margin contracted 145 bps. This decline was primarily due to weaker performance at casino.
Net revenues of $911 million from the company's regional operations increased 29% from the prior-year quarter number, driven by revenues of $76 million from MGM Springfield and $55 million from Empire City Casino and net revenues of $68 million from MGM Northfield Park's operations. Adjusted property EBITDA was $255 million, mirroring a 34% increase from the year-ago quarter. Adjusted Property EBITDA margin expanded 122 bps year over year.
Casino revenues in the quarter under review decreased 12% year over year at the company's Las Vegas Strip Resorts due to a 22% decline in table game wins. However, the same increased 35% at the company's Regional Operations, owing to the opening of MGM Springfield, the acquisition of Empire City Casino and the merger of MGM Northfield Park's operations.
At the Las Vegas Strip Resorts, food and beverage revenues rose 8%, backed by the opening of new outlets at Park MGM as well as NoMad Las Vegas. The same increased 18% at Regional Operations, favored by the opening of MGM Springfield and the acquisition of Empire City Casino and MGM Northfield Park's operations.
MGM Resorts International Price, Consensus and EPS Surprise
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