Net income for the period ending 31 March was $31m, an 86% drop. Despite this, Jim Murren, Chairman and CEO of MGM Resorts, said Q1 results came in “slightly better than expected.”
Consolidated operating income increased to $370m, a 3% growth, with consolidated adjusted EBITDA rising 5% to $740m.
MGM Resorts’ net revenue at Las Vegas Strip resorts remained flat, sitting at $1.4bn, although adjusted property EBITDA fell 10% to $404m.
Regional operations made net revenue of $804m, a 21% increase, while MGM China increased its net revenue by 23% to $734m.
Murren said: “We remain focused on achieving our 2020 targets of $3.6bn to $3.9bn in consolidated adjusted EBITDA and significant growth in free cash flow.
“Our strategy to achieve these goals includes the continued ramping up of MGM Cotai, Park MGM and MGM Springfield, and the implementation of the MGM 2020 Plan.”
The Chairman and CEO went on to discuss a plan to create a “streamlined, nimble organisation.”
Last week, the operator cut 254 positions companywide and said there would be more to come in the next few weeks.
MGM Resorts said this restructuring program could lead to an additional $300m in cash flow by 2021.
