MGM Resorts International has yet to release a full report for Q1 2020, but some details have been revealed. MGM China faces a 63% year-on-year decline with $272 million in revenue through March 31. The adjusted Property EBITDAR for MGM China is $22 million (an 88.6% decline).
Daily cash operating expenses for Macau properties are $1.5 million per day. MGM stated: “Several travel and entry restrictions in Macau, Hong Kong and certain cities and regions in mainland China remain in place … significantly impacting visitation to our Macau properties, which continue to have a material impact on MGM China’s results of operations.”
MGM reported it costs the company $270 million a month to keep the venues (aside from MGM China and MGM Growth Properties) ready for re-opening once the lockdowns are lifted.
Jefferies gaming analyst David Katz expressed that “the near-medium-term outlook for the business remains highly questionable. Taken in total, we believe the update supports our positive view, which is MGM can endure until recovery is clearer.”
MGM net revenue for Q1 is $2.3 billion. This 29% drop was caused by disruptions in activity in both in the US and Macau.