MGM Resorts Int'l Reveals 2015 First Quarter Results
Photo courtesy of MGM Resorts International
MGM Resorts International reported its first quarter results on Monday.
The global hospitality and entertainment company reported strong showings from its wholly owned domestic resorts but ultimately experienced a decline in revenue, primarily due to relatively poor numbers from its MGM China unit and CityCenter.
When just looking at MGM Resorts’ wholly owned domestic resorts, net revenue, slots revenue, rooms revenue and RevPAR (revenue per available room) were up from the first quarter of 2014.
On the other hand, overall, MGM Resorts experienced an 11 percent decline in revenue (from $2.63 billion to $2.33 billion) and a 1.7 percent drop in adjusted EBITDA, year-over-year. The company’s MGM China unit was the main culprit, recording a 33 percent drop in net revenue (to $630 million), a 13 percent drop in main-floor table games revenue, a 45 percent decline in VIP table games revenue and a 38 percent decrease in adjusted EBITDA (to $148 million).
MGM Resorts didn’t just have troubles in Macau, though.
CityCenter Holdings, LLC—which includes ARIA, Vdara, Crystals, Mandarin Oriental Las Vegas, and Veer Towers—saw its net revenue from resorts operations decline by 4 percent to $300 million. Vdara and Crystals experienced slight increases in net revenue, while ARIA, Mandarin Oriental and Veer Towers experienced decreases. While ARIA registered a decline in net revenue of nearly 6 percent, it still towered over the other CityCenter properties in terms of total net revenue at $238,855.
There were some bright spots, though. CityCenter’s slots revenue increased by 6 percent. Vdara and Crystals reported record numbers in adjusted EBITDA. Vdara also recorded a record RevPAR of $174. ARIA experienced a record RevPAR of $219, while its slots revenue increased by 6 percent.
Diluted earnings per share increased from $0.20 to $0.33, but the drop in sales led to a drop in MGM Resorts’ stock, per MarketWatch.
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