MGM Resorts Reveals Second Quarter 2015 Financial Results
Photo courtesy of MGM Resorts International
Global hospitality company and Las Vegas powerhouse MGM Resorts International reported its financial results for the second quarter of 2015 on Tuesday.
MGM Resorts reported increases in several major performance metrics. The company’s wholly owned resorts (including Bellagio, MGM Grand, Mandalay Bay and The Mirage) increased net revenue 4 percent to $1.7 billion, compared to the second quarter of 2014. There were also increases across MGM Resorts’ wholly owned resorts in adjusted property EBITDA (up 11 percent to $458 million), rooms revenue (up 6 percent), and revenue per available room or RevPAR (up 6 percent).
"We are continuing to drive increased profits at MGM Resorts with second quarter wholly owned Adjusted Property EBITDA up 11 percent driven by growth at our Las Vegas and regional resorts,” said Jim Murren, chairman & CEO of MGM Resorts International, via a release. “These resorts are continuing to gain operating momentum while we continue to make significant progress on our development pipeline in Cotai, Maryland, and Massachusetts.”
CityCenter in Las Vegas, which features ARIA Resort & Casino, Vdara Hotel & Spa and The Shops at Crystals, reported increases in net revenue from resort operations (up 3 percent to $312 million) and adjusted EBITDA from resort operations (up 4 percent to $84 million).
ARIA’s table games hold percentage in the second quarter was down from last year (21.5 percent, compared to 23.4 percent) and slots revenue dropped 4 percent, but RevPAR for the property reached an all-time high ($222, up 8 percent, year-on-year).
Vdara boasted RevPAR of $179, while reporting an increase in adjusted EBITDA (up 10 percent to $8 million).
Crystals reported adjusted EBITDA of $12 million, an increase of 5 percent, year-on-year.
MGM Resorts also announced its Profit Growth Plan on Tuesday. The plan called to “continue to optimize MGM's scale for greater efficiency and lower cost throughout our business” and “identify areas of opportunity to organically drive incremental revenue growth.” An annualized adjusted EBITDA of $300 million is expected to be “fully realized” by the end of 2017, according to MGM Resorts.
"The Profit Growth Plan represents a further advancement in how we conduct business at MGM Resorts, with greater focus on streamlining business process, leveraging our size and scale to reduce costs and drive market share, and innovations in customer service. This plan will redefine the way we operate in critical areas and position MGM Resorts for future growth, for the benefit of our Company as a whole and our shareholders," Murren said.
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