American casino operator MGM Resorts International has reportedly announced that its MGM China Holdings Limited subsidiary expects to record a decline of 63% year-on-year in first-quarter net revenues to approximately $272 million.
According to a report from Inside Asian Gaming, the New York-listed behemoth used an official filing to detail that its subordinate is also anticipating a drop of 88.6% year-on-year in adjusted earnings before interest, tax, depreciation and amortization for the three months to the end of March to around $22 million.
Las Vegas-headquartered MGM Resorts International is responsible via its Macau enterprise for the 582-room MGM Macau venue as well as the even larger MGM Cotai property and moreover declared that these two properties were running up daily cash operating expenses ‘significantly in excess of amounts being earned’ at roughly of $1.5 million.
Reportedly read the filing from MGM Resorts International…
“Several travel and entry restrictions in Macau, Hong Kong and certain cities and regions in mainland China remain in place, significantly impacting visitation to our Macau properties, which continue to have a material impact on MGM China Holdings Limited’s results of operations.”
The source reported that MGM Resorts International made these revelations yesterday evening as part of a prospectus issued in aid of a $500 million bond offering. This campaign has since purportedly been upsized to $750 million as the firm endeavors to increase its liquidity in the face of the ongoing coronavirus pandemic.
The financial update from MGM Resorts International furthermore reportedly divulged that it expects company-wide first-quarter net revenues to have dwindled by about 29% year-on-year to around $2.3 billion largely due to the under-performance of MGM China Holdings Limited. It purportedly subsequently disclosed that this is due to be joined by a 61% crash in adjusted earnings before interest, tax, depreciation and amortization to nearly $295 million.
However, the casino firm reportedly explained that the recent sales of its Mandalay Bay Resort and Casino Las Vegas and MGM Grand Las Vegas properties should help to push first-quarter operating income up by some 250% year-on-year to $1.3 billion despite monthly aggregate expenses running at around $270 million per month.