Gambling and hospitality operator MGM Resorts International reported on Thursday its financial results for the three and the six months ended June 30, 2016. Quarterly revenue decreased 4.8% year-on-year to $2.3 billion.
The drop was mainly attributed to the 19% decline in net revenue from MGM China. The operator’s Macau-based subsidiary generated a total of $452 million during this year’s second quarter.
During the period in review, MGM Resorts reported casino revenue of $1.1 billion, down from the amount of $1.2 billion generated during the same three months of the previous year.
The operator’s half-year net revenue totaled $4.5 billion, reflecting a decrease from the $4.7 billion posted for the six months ended June 30, 2015. Casino revenue for the period in question amounted to $2.3 billion, down from a total of $2.5 billion generated during the first half of 2015.
Quarterly operating income increased from $348.5 million to $769.1 million. MGM Resorts reported half-year operating income of $1.1 billion, up from $743.6 million for the first half of 2015. The growth was attributed to the sale of The Shops at Crystal, which was closed early in the second quarter of the year.
MGM Resorts was particularly happy with its performance in its domestic market. Adjusted property EBITDA from domestic resorts amounted to $515.1 million during the second quarter of the year, up from $458.1 million for the same period of 2015. MGM Resorts pointed out that adjusted property EBITDA exceeded the $500-million mark for the first time in eight years. Half-year adjusted property EBITDA from domestic resorts totaled $1 billion, up from $847.9 million reported for the same period of the previous year.
MGM China generated a total of $119.2 million and $233.3 million during the second quarter and first half of the year, respectively, in adjusted property EBITDA. The operator posted drops in both reported periods.
Commenting on the gambling and hospitality giant’s financial results, Chairman and CEO Jim Murren said that the company had its most successful quarter since 2008 and attributed this to concerted and continued efforts of its executive teams and employees. Mr. Murren highlighted the performance of their domestic division, saying that it was the one to have contributed the most to the overall quarterly and half-year results.
