MGM reports revenues down 53% in Q4 2020
2020 was a bad year for basically everyone around the world, yet MGM Resorts somehow was able to just barely defeated the expectations in their fourth quarter financial report. Massive decreases were overshadowed by some great points that give hope for what’s to come in the future.
In total, MGM reported a 53% decrease in revenue for Q4, which has clearly another one of the effects brought on by the COVID-19 pandemic at all of the company’s locations. The revenue was down to $1.5 billion, a huge decrease from $3.2 billion in the 2019 equivalent. Generally, that ended in an operating loss of over $364 million, a huge difference from the income of $3 billion in the previous year.
The company also mentioned rather cheerily at the top of their report that the recovery will be led by local casinos, instead of vacation hotspots including Las Vegas and Macau. But Bill Hornbuckle, Chief Executive Officer and President, boasted about BetMGM as being the main part that will push the company to recovery.
BetMGM gained significant market share throughout 2020 while successfully launching in seven new states. We expect to be in 20 markets by the end of the year, and are very pleased with the January launches in Iowa, Michigan, and Virginia.
In an analysis of the company’s revenue sorrows, Las Vegas locations witnessed a decrease of 66%, Macau 58%, and all other U.S. locations 34%.
For all of 2020, MGM reported a net revenue of $5.2 billion, a 60% decline from 2019’s $12.9 billion. This brought forward a net loss of about $1 billion, an astonishing drop from 2019’s $2 billion net income. And aside from a tiny rebound in the fourth quarter, previous quarters left an awful aftermath.
MGM still overcame expectations, but just barely. Analysts were wishing to witness revenues of at least $1.47 billion, a number the operator scarcely cleared.
These results were released after the western markets had shut down on February 10th, so it’s still too soon to know the investors’ reactions. After-hour trading reveals that MGM will be witnessing a few points drop at least, which proposes that MGM’s latest rise from $28.56 to $36.47 was buying the rumor and selling the news.
MGM China also reported revenues to the Hong Kong Stock Exchange and even beat expectations. It declared modified property earnings before interest, taxation, depreciation and amortisation (EBITDA) of HKD367.2 million ($47.4 million) for the quarter.