By Tim Poole
MGM Resorts International has reported a 9% year-on-year increase in Q3 consolidated net revenue, to $3.3bn.
MGM’s Las Vegas Strip Resorts saw net revenue rise 4% to $1.5bn, while revenue from regional operations was up 20% to $935m; MGM China revenue increased 22% to $738m.
However, consolidated operating income fell 42% to $238m, due to a non-cash impairment charge of $219m – related to Circus Circus Las Vegas and adjacent land. Excluding this charge, consolidated operating income rose 11%.
Net loss attributable to MGM was subsequently $37.1m, compared to net income attributable to MGM of $143m for Q3 2018.
Consolidated adjusted EBITDA did rise 14% to $814m, while MGM CFO Corey Sanders emphasised the operator’s focus on achieveing its 2020 targets: $3.6bn to $3.9bn in consolidated adjusted EBITDA.
Jim Murren, Chairman and CEO of MGM Resorts, said: "Our Las Vegas Strip Resorts saw an increase in revenue by 4%, with non-gaming revenues up 6% thanks to a robust performance in rooms and food and beverage.
"Gaming revenue at our Las Vegas Strip Resorts declined by 3%, due to ongoing weakness in Far East baccarat volumes, offset by increases in slots and domestic table games play."
Murren also said the recent sales of the Bellagio's and Circus Circus Las Vegas’ real estate, to Blackstone Real Estate Income Trust, will "fortify" MGM’s balance sheet.