Forced closures and restrictions on operations at its casino properties due to the COVID outbreak have hit MGM Resorts hard, with consolidated Q2 net revenues down by 91% year-on-year to $290m.
That and other losses were revealed in the firm’s financial results for the quarter ended June 30, 2020 which also noted a consolidated operating loss of $1bn compared to a consolidated operating income of $371m in the prior year quarter.
The net loss attributable to MGM Resorts was $857m compared to net income attributable to MGM Resorts of $43m year-on-year.
Newly appointed President and CEO Bill Hornbuckle told investors: “During the second quarter, we began re-opening our properties across the US and have been heartened by the better than expected demand in the marketplace. I am grateful to the men and women who continue to dedicate their efforts to re-opening our properties and welcoming our guests, safely, once again.
“In addition, our MGM 2020 plan and modifications to our operating model have directly contributed to our margin improvements during the period in which our properties were open.”
“As we look ahead, we believe the long term fundamentals of our business and the broader industry remain intact. However, the near term operating environment will remain challenging and unpredictable as COVID-19 case trends, health and safety protocols, and travel restrictions continue to heavily impact our business.”
We remain focused, flexible, and disciplined in navigating this evolving landscape while continuing to pursue our long term growth opportunities, supported by our strong liquidity position. As such, we remain excited about our integrated resort opportunity in Osaka, expanding our footprint in Macau, and positioning BetMGM as a leading player in the US sports betting and iGaming markets.”
Corey Sanders, Chief Financial Officer and Treasurer, commented: “During the second quarter, we continued to take proactive steps to further bolster our already strong liquidity position by accessing the debt capital markets, amending our credit agreement to preserve access to our revolver, and causing MGP to redeem $700m of MGM Resorts’ operating partnership units for cash, under our agreement for MGP to redeem $1.4bn of MGM Resorts’ units.
“Furthermore, we continued to work aggressively to reduce operating and corporate expenses during the re-opening process while providing a safe and appealing environment for our employees and guests. Our domestic liquidity, excluding MGM China and MGP, is $4.8bn, before factoring in any additional change in our stake in MGP.”