MGM Resorts Q4 Below Expectations

MGM Resorts International released its financial results for the quarter and year ended December 31, 2019 showing combined net sales to $3.2bn ahead of the previous quarter by 4 percent.

Consolidated operating income rose to $3bn compared to $336 m annually, including a benefit of $2.7bn attributable to the Bellagio real estate transaction of the group. Net income, again including the sale from Bellagio, came in at $2bn with a net loss of $23 m year-on-year.

According to the report, consolidated adjusted EBITDAR decreased 3 percent to $682 m in the latest quarter compared to $703 m in the preceding period, primarily attributable to a decline in table game sales led by Far East baccarat at the company’s domestic resorts and the inclusion of $24 m in insurance proceeds in the preceding quarter.

Jim Murren Chairman and CEO said: “We are proud of the progress we made during 2019 as we took important steps to evolve our organisation. However, our fourth quarter results were below our expectations, primarily due to lower than expected hold, weakness in Far East baccarat, and certain one-time items.

“All other dimensions of our business in Las Vegas performed on or ahead of plan. For full year 2019, we generated strong consolidated net revenue and adjusted EBITDAR, which increased 10% and 6%, respectively, year over year. We are also executing on our stated MGM 2020 plan, which is realising material cost savings and revenue enhancements and transforming the way we operate to position MGM Resorts for future growth and long-term value creation.”

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