MGM Resorts International has published its financial results for the second quarter of 2021, declaring a 683% year-over-year improvement in net revenue.
For the quarter ending June 30, the company reported consolidated net revenues of $2.3bn, an increase of 683% on the prior-year quarter (Q2 2020: $289,809) that was negatively affected by temporary closures of its properties due to the COVID-19 pandemic.
Consolidated operating income came in at $264m, a rise on the consolidated operating loss of $1bn in Q2 2020. Net income attributable to MGM Resorts was $105m versus the net loss attributable of $857m in the previous year’s quarter.
MGM declared diluted earnings per share of $0.14 in Q2 2021 (Q2 2020: diluted loss per share of $1.67), adjusted diluted earnings per share (adjusted EPS) was a loss per share of $0.13 (Q2 2020: Adjusted EPS loss per share of $1.52) and a consolidated adjusted EBITDAR of $617m.
Bill Hornbuckle, CEO and President, commented: “We delivered a strong second quarter, driven by robust demand and productivity efforts across our domestic portfolio.
“Our Las Vegas Strip and Regional Operations Adjusted Property EBITDAR margins reached all-time records and our Regional Operations also delivered an all-time quarterly record in Adjusted Property EBITDAR. Our US sports betting and igaming venture, BetMGM, continues to outperform as the number two operator nationwide.
“We also recently announced several strategic transactions that furthered our goal of becoming a more streamlined, focused organization with stronger liquidity. We continued to advance that goal with our announced agreement with VICI and MGM Growth Properties to monetize our MGP operating partnership units for $4.4bn in cash.
“I’m grateful for the tremendous work that our MGM Resorts teams continue to put into positioning this company for future growth and success.”
Broken down further, MGM’s Las Vegas Strip Resorts achieved net revenues of $1bn, an increase of 566% compared to the prior-year quarter (Q2 2020: $150,811) but a decrease of 31% compared to Q2 2019.
Regional operations earned net revenues of $856m, an increase of 859% compared to the previous year’s quarter (Q2 2020: $89,264) but a fall of 6% compared to Q2 2019.
Jonathan Halkyard, CFO and Treasurer of MGM Resorts, added: “Our robust liquidity position provides us with significant flexibility as our business continues to improve and stabilize.
“As such, we have returned capital to shareholders through share repurchases during the second quarter and expect to remain programmatic in our approach through the rest of the year. As we navigate future uses of our capital, we will remain disciplined in maintaining a strong balance sheet, pursuing targeted growth opportunities, and returning cash to shareholders.”