- Net revenues for MGM Resorts have increased to $3.2 billion.
- The EBITDAR for the company has seen a decrease from Q3 to Q4.
- MGM expects growth in 2020 thanks to more states legalizing sports betting.
LAS VEGAS – MGM Resorts have released their Q4 revenue reports on Wednesday and it fell short of their expectations.
Overall, MGM Resorts saw growth during the last quarter of 2019. Revenue increases and income increases showed that Q4 was successful for the gaming company. But that does not mean that executives were completely satisfied with how the last quarter went.
Some Of The Numbers
According to MGM’s financial report, the consolidated net revenues for Q4 has increased by 4%. MGM Resorts ended with $3.2 billion in this bracket.
Consolidated operating income saw a much higher increase. For Q4, it was $3 billion while in Q4 during 2018, it was $336 million. This number alone shows how much MGM Resorts grew in 2019.
Although MGM resorts have seen some gains compared to the prior year quarter, there were some decreases as well. For example, the adjusted diluted earnings per share saw a loss of $0.03. On top of that, the consolidated EBITDAR decreased by 3%. EBITDAR stands for earnings before interest, taxes, depreciation, and amortization.
“We are proud of the progress we made during 2019 as we took important steps to evolve our organization,” said Jim Murren, Chairman and CEO of MGM Resorts. “However, our fourth quarter results were below our expectations, primarily due to lower than expected hold, weakness in Far East baccarat, and certain one-time items. All other dimensions of our business in Las Vegas performed on or ahead of plan. For full year 2019, we generated strong consolidated net revenue and Adjusted EBITDAR, which increased 10% and 6%, respectively, year over year.”
Sports Betting Bump
Like other gaming companies, MGM Resorts could see an overall increase in their earnings thanks to legal sports betting. MGM properties in Las Vegas already have sportsbooks operating and available.
Although there is an upfront cost, MGM will do what they can to get sportsbooks in their properties across the country. For example, Mississippi sports betting regulators have opened the door to a new MGM sportsbook to open in that state.
Most gaming companies in the United States are taking advantage of new sports betting laws to increase their revenue. As more states legalize sports betting in 2020, MGM Resorts is likely to make up for revenue losses through this specific type of gambling.
Daniel is a writer that enjoys writing to inform readers. When Daniel was writing for The Borgen Project, he liked informing the world about victories in global poverty issues. Daniel is also an avid horse racing fan who has been going to the track with his father for over a decade betting the ponies. When he is not writing about sports betting or at the track, Daniel loves playing video games and watching sports in his spare time.