MGM Resorts reports Q4 revenue of $1.5bn, down 53% y-o-y

MGM Resorts released its fourth quarter 2020 earnings, which saw net revenue drop 53% year-on-year to $1.5bn.

The company said lower business and tourism volume along with Covid-19 induced travel restrictions led to decreased revenues.

MGM net loss was $448m for Q4 compared to net income of $2bn in the prior year quarter.

The company reported operating loss of $364m for the quarter, compared to operating income of $3bn in the prior year quarter. The company said much of Q4 2019’s operating income was related to a $2.7bn gain related to the Bellagio real estate transaction.

Las Vegas was hit especially hard, with Strip net revenues falling 66% y-o-y to $480m. Adjusted property EBITDAR dropped 86% to $483m.

MGM China net revenues was $305m, a 58% decrease y-o-y, while adjusted property EBITDAR there fell 78% to $4.1m.

The company had cash and cash equivalents of $5.1bn as of December 31, 2020. Total liquidity at year’s end was $8.8bn, while principal amount of indebtedness outstanding was $12.5bn.

“We remain confident in the long-term recovery of our business,” sad Bill Hornbuckle, CEO and President of MGM Resorts. “We have strengthened our operational foundation through cost efficiencies that position us for sustainable growth, as solutions to the public health crises accelerate and restrictions continue to ease.”

Hornbuckle said October was the strongest month for MGM’s Las Vegas properties since the pandemic began. He also expressed confidence that Nevada Gov. Steve Sisolak will loosen Covid restrictions sometime in March.

“A lot more to come. Obviously we’ve got probably three or four months of angst and we’ll see as these states continue to rollout and most notably here in southern Nevada what happens,” Hornbuckle said.

Hornbuckle indicated that MGM is doubling down on iGaming and online sports betting despite a failed bid last month to acquire Entain, MGM’s partner of joint venture BetMGM.   

BetMGM brought in revenue of $178m in 2020, and MGM said it has a 17% stake in the US sports betting market, including the No. 1 position in recently launched Tennessee.

“We expect to be in 20 markets by the end of the year, and are very pleased with the January launches in Iowa, Michigan, and Virginia,” Hornbuckle said.

Ezra Amacher

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