MGM Resorts International released its financial results for the first quarter of 2021 yesterday. Although the company suffered substantial operating losses during the quarter, CEO Bill Hornbuckle sought to concentrate on recovery and growth as customer demand at its domestic properties improved.
The market demand, combined with major improvements to MGM’s operating model, has put the company in a good position to profit from the recovery, he said.
“Our regional properties achieved record first quarter adjusted Property EBITDAR and adjusted Property EBITDAR margins,” said Hornbuckle. “Las Vegas operating results improved sequentially, leisure demand is improving, and we now have a tangible path to bring conventions and entertainment back at scale.
“We are also deeply focused on our long-term goals including investing in digital to drive deeper customer engagement and BetMGM, our US sports betting and igaming venture, which continues to impress as the leading operator in US igaming and the top three operator in US online sports betting. Our future is bright.”
The company’s first-quarter financials were less encouraging, with net sales of $1.6 billion down 27 percent year over year. Although property closures impacted the prior year period for a portion of the quarter, the current quarter was impacted by midweek property and hotel closures, lower market volume and travel activity, and continuing operational restrictions mainly at its Las Vegas Strip Resorts due to the pandemic.
The consolidated operating loss was $247 million in Q1 2020, compared to $1.3 billion in Q1 2020, which included a $1.5 billion gain from the MGM Grand Las Vegas and Mandalay Bay real estate deal.
MGM Resorts’ net loss for the quarter was $332 million, compared to $807 million in the prior year quarter, which included the $1.5 billion benefit.
CFO and Treasurer Jonathan Halkyard said: “Our robust liquidity position provides us with significant flexibility amid an improving operational backdrop. As such, we have begun to return capital to shareholders through share repurchases during the first quarter.
“Going forward, we will be disciplined in allocating our capital by maintaining a strong balance sheet, pursuing targeted growth opportunities and returning cash to shareholders.”