Gambling and hospitality giant, MGM Resorts International, posted its financial results for the first quarter of 2019 on Monday and it reads that revenues from its Vegas Strip Casinos have slipped 13 percent year-on-year. The company has attributed the underperformance to a significant 17 percent decrease in table game wins across the venues.
Despite plummeting revenues from the Vegas strip casinos, MGM posted an excellent regional performance with the company’s net revenues increasing by 21% year-on-year for the first quarter, to $804 million.
While MGM’s consolidated net revenues from its domestic and overseas operations in China increased 13% compared to the previous year quarter to $3.2 billion, the consolidated operating income increased 3% compared to the prior year quarter to $370 million.
Releasing the first quarter’s figures, in an official statement to the press, MGM Chairman and CEO, Jim Murren, said, “The first quarter came in slightly better than our expectations with consolidated net revenues up by 13 percent and Adjusted EBITDA up 5 percent.”
“Our Las Vegas resorts experienced broad and diversified customer demand. Our non-gaming revenues grew by 4%. We had strong gaming business outside of baccarat, but previously flagged factors such as a solid baccarat business in the prior year period and a low win rate in the current period led to flat revenues and a 10% decrease in Adjusted Property EBITDA year over year,” he added.
Talking about the company’s strategic targets for the coming year he said that they are looking at $3.6 billion to $3.9 billion in consolidated adjusted EBITDA for 2020.
Net revenues from operations in China increased 23% to $734 million including $301 million from a full quarter of operations at MGM Cotai compared to $85 million in the prior year quarter as the property opened on February 13, 2018.
Corey Sanders, Chief Financial Officer of MGM Resorts, said: “We continue to be focused on fortifying our balance sheet. Earlier this month, we raised $1 billion of senior notes at very attractive rates and used the proceeds to address our near-term maturities. We remain confident in our goal to get our consolidated net leverage to 3-4x by year end 2020.”
Earlier last month MGM had raised $1 billion in senior notes to raise funds to payout for senior notes maturing 2019. The company is also campaigning aggressively to win an integrated resort license in Japan.