$290m Q2 revenue a far cry from 2019 figure
MGM Resorts International has reported a 91% decline in quarterly revenue as COVID-19 continues to impact the casino operator. For the three months ending June 30, the Las Vegas-based company reported revenue of $290m. This is compared to the $3.2bn it generated in 2019.
an operating loss of $1bn
The coronavirus pandemic also contributed to an operating loss of $1bn at MGM Resorts during Q2. The operating income recorded during Q2 2019 was $371m.
Bill Hornbuckle, MGM Resorts CEO, said: “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.”
Nevada properties suffer 90% net loss
On June 4, the MGM Resorts-owned Bellagio, MGM Grand, and New York New-York properties reopened their doors to the public. The Excalibur, Luxor, Mandalay Bay, and ARIA followed later that month, while Vdara resumed business activity on July 16. Mirage and Park MGM remain closed, The Wall Street Journal reports.
Owing to temporary gambling venue closures amid the pandemic, net revenues for MGM’s Vegas Strip properties decreased 90% in the second quarter, compared to the $151m made in Q2 2019. MGM also reported a net loss of $857m compared to last year’s $43m in net income.
MGM scaling back its workforce
Since reopening its properties, MGM Resorts has reduced its staff numbers and some amenities, which could end up becoming permanent. According to the Las Vegas Review Journal, the changes came about as the casino operator saw a reduction in foot traffic, with hotel occupancy rates of between 30% and 50%.
company brought back less than 50% of its employees
MGM chief financial officer Corey Sanders said the company brought back less than 50% of its employees, while furloughs and layoffs have enabled the business to cut costs. Hornbuckle also said costs could be cut by $450m. He added that when demand returns, the casino operator will be much stronger as his long-term outlook for the business remains positive.