- MGM has endured monumental losses for its second quarter in 2020 because of the Coronavirus.
- The company remains focused on a solid third quarter as the world begins to reopen and business can once again begin.
NEW YORK – MGM Resorts International closed their second quarter on June 30 and the reports are in showing that the company has lost a whopping $1 billion for their 2020 Q2.
The one-billion-dollar loss came from consolidating operations where they profited $371 million for Q2 in 2019. A net loss of $857 million was recorded where they saw earnings of $43 million this time last year.
Second Quarter Findings For MGM
The outbreak of COVID-19 led MGM to a total net revenue for their second quarter of $290 million. That’s a 91% drop from 2019’s Q2 report. Due to closures and the lack of sporting events, retail and mobile application numbers declined rapidly.
“During the second quarter, we continued to take proactive steps to further bolster our already strong liquidity position by accessing the debt capital markets, amending our credit agreement to preserve access to our revolver, and causing MGP to redeem $700 million of MGM Resorts’ operating partnership units for cash, under our agreement for MGP to redeem $1.4 billion of MGM Resorts’ units,” said Corey Sanders, Chief Financial Officer and Treasurer of MGM Resorts. “Furthermore, we continued to work aggressively to reduce operating and corporate expenses during the re-opening process while providing a safe and appealing environment for our employees and guests. Our domestic liquidity, excluding MGM China and MGP, is $4.8 billion, before factoring in any additional change in our stake in MGP.”
The Future Plan Going Into Q3
With the reopening of their properties as well as sports starting to come back, MGM is looking toward the future. The Coronavirus has not brought them to their knees in defeat even with a Q2 report as bleak as the one they’ve received.
MGM has modified their business models with COVID-19 in mind and will continue to mold their strategies around the pandemic in a way that they can be the most profitable.
The company expects to produce much larger dividends for the third quarter and make a comeback from this huge Q2 blow. Not only will they be seeking to gain revenue from their already established businesses, but they are also looking to venture out and expand.
They would like to grow in their legal sports betting and iGaming sectors within the betting markets of the United States.
And with their liquidity, they foresee a long-term future of development and advancement opportunities throughout the entire gaming spectrum on a global level. MGM could be the Cinderella story of comebacks if they implement the right strategy to have a stellar third-quarter showing.
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News tags: Corey Sanders | Coronavirus | COVID-19 | MGM | MGM Resorts International
Christina has been writing for as long as she can remember and does dedicated research on the newly regulated sports betting market. She comes from a family of sports lovers that engage in friendly bets from time to time. During the winter months, you can find Christina baking cookies and beating the entire staff at Mario Kart…the N64 version of course.