MGM revenue falls but property sales increase profits in Q1
MGM Resorts’ revenue fell 29.1% to $2.25bn for the first quarter of 2019 due to the effects of the novel coronavirus (Covid-19), but the operator’s profits skyrocketed due to sales of two of its properties.
Bill Hornbuckle, who has served as acting chief executive and president of MGM Resorts since Jim Murren stepped down after the operator announced its 2019 results, said the business had been doing well before the impact of the virus was felt.
“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,” Hornbuckle said.
Casino continued to make up around half of the operator’s overall revenue in Q1, at $1.05bn, however this total fell 35.4% year-on-year.