MGM China reported a 63% year-on-year decline in net revenues to US$272 million for the three months to 31 March 2020, pushing Adjusted Property EBITDAR to a loss of US$22 million compared with Adjusted Property EBITDAR of US$193 million in 1Q19.
With border restrictions between Macau and mainland China cutting visitation to near zero, all gaming segments felt the impact with VIP table game turnover down 66% to US$3.43 billion and mass table drop falling 61% to US$777 million. Notably, peninsula property MGM Macau did roughly 50% more business than MGM Cotai during the quarter.
The results also reflected the timing of the COVID-19 pandemic, with MGM China having started the year strongly on net revenue of US$207 million in January before slipping to just US$15 million in February – when all Macau casinos were closed for 15 days – and US$50 million in March. Monthly Adjusted Property EBITDA was US$43 million In January before falling to an EBITDAR loss of US$40 million in February and an EBITDAR loss of US$25 million in March.
The company added it was incurring cash operating expenses of around US$1.5 million per day at its two Macau IRs, MGM Cotai and MGM Macau, combined, “which is significantly in excess of amounts being earned at those properties.”
However, it also added “we expect a faster recovery in Macau, followed by our regional properties and then Las Vegas.”
“The year started strong with results ahead of expectations, however the COVID-19 pandemic resulted in the closure of our properties which had a material negative impact on our first quarter results,” said Bill Hornbuckle, Acting CEO and President of MGM Resorts.
“We are aggressively managing our cash outflows and strengthening our liquidity position to make certain that despite a lack of revenue, we are able to advance our longer term strategic initiatives such as a new integrated resort in Japan, growing our business in Macau, and establishing a leading presence in sports betting and online gaming (in the United States).
“With premier assets in most of the markets in which we operate, we are confident we will emerge from the crisis in a strong position.”
Group-wide, consolidated net revenues for MGM Resorts fell 29% to US$2.3 billion with Consolidated Adjusted EBITDAR down 61% to US$295 million.
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