First-quarter Profits Up Across MGM Resorts
LAS VEGAS — MGM Resorts International reported financial results for the quarter ended March 31, 2019. Consolidated net revenues increased 13% compared to the prior year quarter to $3.2 billion.
MGM Springfield earned $9.38 million on $77.9 million in net revenue. That figure represents adjusted earnings before interest, tax, depreciation, and amortization, or EBITDA.
“The first quarter came in slightly better than our expectations with consolidated net revenues up by 13% and adjusted EBITDA up 5%,” said Jim Murren, chairman and CEO of MGM Resorts International. “Our Las Vegas resorts experienced broad and diversified customer demand. Our non-gaming revenues grew by 4%.”
Net revenues increased 21% to $804 million, including $78 million in contributions from the opening of MGM Springfield in August and $37 million in contributions from the acquisition of Empire City Casino in New York in January.
“We remain focused on achieving our 2020 targets of $3.6 billion to $3.9 billion in consolidated adjusted EBITDA and significant growth in free cash flow,” Murren said. “Our strategy to achieve these goals includes the continued ramping up of MGM Cotai [in Macau], Park MGM [in Las Vegas], and MGM Springfield, and the implementation of the MGM 2020 Plan. MGM 2020 is a company-wide initiative aimed at leveraging a more centralized organization to maximize profitability and lay the groundwork for the company’s digital transformation to drive revenue growth. We are creating a streamlined, nimble organization that empowers leaders to make faster decisions. We are excited about our targeted growth opportunities in Japan, sports betting, and interactive initiatives. At the same time, we are maintaining a disciplined approach to capital allocation and creating long-term value for shareholders.”