Major hotel and casino operator MGM Resorts International today announced its financial results for the three months ended September 30, 2016. The company said that it has delivered its best quarter in terms of net revenue and adjusted property EBITDA generated by its domestic resorts.
MGM Resorts posted overall net revenue of $2.5 billion for the reported three months, up from the amount of $2.3 billion generated during the same quarter of 2015. Casino revenue for the period amounted to $1.3 billion, compared to casino revenue of $1.2 billion reported in the third quarter of the previous year.
Adjusted property EBITDA totaled $753.9 million for the period in review, up from $602.5 million generated during the same three months of 2015.
The gambling operator reported operating income of $712.8 million, compared to operating income of $297.4 million from the same time of the previous year. Net income amounted to $561.3 million, reflecting a substantial increase from the amount of $94.7 million from 2015.
Net revenue from MGM Resorts’ domestic properties totaled $1.9 billion for this year’s third quarter, up from $1.6 billion from last year. The gambling operator currently runs 13 casino resorts in the US, with most of these being located in Las Vegas. The net revenue reported included a $151-million contribution from the Borgata Hotel Casino & Spa, which MGM Resorts acquired fully during the reviewed three months. Adjusted property EBITDA from domestic resorts amounted to $570.2 million, up from $411.3 million generated during the third quarter of 2015.
MGM China, MGM Resorts’ Macau-based subsidiary, reported net revenue of $499.8 million, down from the amount of $529 million generated during the same three months of 2015. Adjusted property EBITDA increased from $128.2 million in 2015 to $149.9 million in 2016.
MGM China currently operates the MGM Macau integrated resort in Macau, the only Chinese territory where casino gambling is legal. A second casino resort was expected to be launched by the year’s end but the operator pushed back its opening to the second quarter of 2017. MGM Cotai has been described as the “jewelry box” of Macau’s Cotain strip. The property is set to feature 1,500 hotel rooms and suites, a spacious casino floor, meeting and convention space, and different entertainment options and attractions for visitors.
Commenting on the latest financial results reported, MGM Resorts CEO Jim Murren said that the company had a “tremendously strong quarter.” The executive also pointed out that it will continue pursuing organic growth and expanding its footprint.
MGM Resorts is set to open the MGM National Harbor integrated resort in Maryland and the Park Theater in Las Vegas in December.
