MGM Resorts International has just released its financial statement for this year’s third quarter. Considering the figures we are presented with, the famous entertainment company seems to have done better during the past three months as opposed to its performance this time last year. According to the financial report MGM’s quarterly revenue amounted to $2.23 billion, which indicated a 1% year-on-year rise and 2% advancement of its pro-forma earnings before interest, taxation, depreciation, and amortization (often abbreviated EBITDA) were subtracted.
The company’s third quarter of the year was also marked by a slight decrease in the loss per share which was a total of $20.3 million, or $0.04 per share, as compared with last year’s sum of $22.3 million or $0.05 per share.
MGM China Holdings Ltd.’s net income which remained after the subtraction of tax and other contributions fell 2% to $794 million. It appears that MGM Macau Casino lost about 19% of its VIP table profits but faced a 34% rise in profits from mass-market tables. This decline was most probably due to the fact that the turnover from VIP tables fell by 19% as opposed to that in last year’s 3Q. Another reason that might have caused the decline is the decrease in the hold percentage by 0.1% from 2.8% in 2013 to 2.7% in 2014. The good news is that revenue from mass-market tables rose by 15%. There was also an increase in the hold percentage from 24% in the last year to 28% in the present year.
The pro-forma profits of MGM China amounted to $214 million which indicated a 12% improvement as compared with last year’s performance of the company. As for the EBITDA margin, it rose by 330 points. Just a quick reminder – in 2013 it was 26.9%. The profit of the company after operating expenses were taken out also increased slightly by $36 million, reaching $140 million in this year’s third quarter.
MGM’s Las Vegas resorts were recorded to have improved their gross profits by 3%. There was, however, a 6-percent decrease in their adjusted profits which amounted to $328 million. The drop was primarily due to a fall in the hold percentage of table games. This year it was 19.8% as compared to last year’s 21.5 percent. There was also a small drop in revenue, derived from slot machines, at the company’s own casinos. However, a one-percent increase in slot profits might be examined in Las Vegas Strip resorts.
Jim Murren, Chairman and CEO of MGM Resorts, stated that the company was committed to the growth of its revenue. He also commented on the construction of MGM Cotai, the second Macau casino in China and the first located at the Cotai strip. Murren stated that the budget allocated to the project is more than enough and, as initially projected, it will most probably be opened in the fall of 2016.
