MGM Resorts International has lauded continued strong performance of its BetMGM sports betting and igaming entity, as well as heaping praise on a “robust demand and productivity efforts” across its land-based gaming portfolio during a solid second quarter.
Coming after the group detailing the continuance of its asset-light strategy which will see Vici Properties acquire MGM Growth Properties for $17.2bn, the casino operator says that it will “remain disciplined” in pursuing future growth opportunities.
Group consolidated net revenues for the period ending June 30, 2021, came in at $2.3bn (2020: $289.8m). While the current quarter benefited from the easing of operational and capacity restrictions and an increase in travel, the prior year was negatively affected by temporary closures at properties due to the health pandemic.
Casino revenue finished up at $1.3bn (2020: $163.6m), with with rooms; food and beverage; and entertainment, retail and other at $365m (2020: $31.6m), $302.6m (2020: $29.7m), and $189m (2020: $45.5m), respectively.
Revenues of $1bn at the group’s Las Vegas strip resorts demonstrates an increase from 2020’s $150.8m but a 31 per cent drop from the same period two years ago, with casino revenue at $353m (2020: $63m). Adjusted Property EBITDA of $397m compared to a loss of $104m one year earlier.
Regional properties through Q2 gained revenue of $856m (2020: $89.2m), a six per decline from 2019, with casino revenue at $708m (2020: $77m). Adjusted Property EBITDAR of $318m compared to a loss of $112m in the prior year quarter.
MGM China publishes revenue of $311m, an increase of 836 per cent compared to $33.1m in the prior year quarter, and a decrease of 56 per cent compared to the same period two years earlier. Adjusted Property EBITDAR of $9m comes in contrast to a loss of $116m in 2020.
Group wide consolidated operating income was $264m compared to 2020’s loss of $1bn, with net income attributable to MGM of $105m up from a loss of $857m, and adjusted EBITDAR finished up at $617m (2020: -$492m).
“We delivered a strong second quarter, driven by robust demand and productivity efforts across our domestic portfolio,” stated Bill Hornbuckle, CEO and president of MGM Resorts.
“Our Las Vegas strip and regional operations adjusted property EBITDAR margins reached all-time records and our regional operations also delivered an all-time quarterly record in adjusted property EBITDAR.
“Our US sports betting and igaming venture, BetMGM, continues to outperform as the number two operator nationwide.”
For the first half of the year, MGM reports a 54 per cent revenue uptick to $3.9bn (2020: $2.5bn), made up of casino’s $2.4bn (2020: $1.2bn); rooms’ $563.4m (2020: $465.5m); food and beverage’s $460m (2020: $426.4m); and entertainment, retail and other’s $324.2m (2020: $318.5m).
Operating income during the six month time frame is down to $17m (2020: $216.3m), net loss attributable to the group fell to $227m (2020: -$50.3m), and adjusted EBITDA came in at $834.6m (2020: -$197m).
Furthermore, Hornbuckle also provided a further update on the group’s “transformational” Vici agreement: “We also recently announced several strategic transactions that furthered our goal of becoming a more streamlined, focused organisation with stronger liquidity,” he added.
“We continued to advance that goal today with our announced agreement with Vici and MGM Growth Properties to monetise our MGP operating partnership units for $4.4bn in cash. I’m grateful for the tremendous work that our MGM Resorts teams continue to put into positioning this company for future growth and success.”