MGM Resorts issued an earnings update amid the Covid-19 pandemic, reporting that revenue has declined for the first two months of 2020, but net income increased more than 500-fold because of the sale of the MGM Grand and Mandalay Bay venues.The pandemic has led to the closure of all commercial casinos in the United States this month as well as all casinos in Macau for 15 days of February.
The operator saw revenue drop 10% year-on-year over the first two months of 2020, primarily due to the closure of casinos and general slowdown of customers in Macau. This closure prompted MGM to decline to issue an earnings guidance for 2020 with its 2019 results.
Earnings before interest, tax, depreciation, amortisation and restructuring (EBITDAR) increased 24%, or 27% of Circus Circus, which was sold in December 2019, is removed from 2019’s figures.
