MGM Resorts’ shares slide on grim status update, forecast

Casino operator MGM Resorts says it’s doing more to help its employees through the COVID-19 pandemic, although most of that help is coming from outside the company.

On Friday, MGM issued a trading update hailing the “strong start” its domestic operations had enjoyed over the first two months of 2020, before those operations were forced to close to minimize further spread of the COVID-19 coronavirus.

MGM’s net income was around $1.3b through the end of February, although the company did get a $1.5b pre-tax gain thanks to January’s MGM Grand/Mandalay Bay deal, so they actually lost $200m, but hey, accounting. Las Vegas Strip earnings (before rent payments) were up 24% while regional operations improved 42%.

Net revenue was down 10% due to the 15-day shutdown of MGM China’s casinos in Macau, and MGM warned that its Macau operations remain a shadow of their former selves due to ongoing travel restrictions, all of which has led to “substantial operating losses” in March.