Categories: General

MGM Resorts Confirm Bookings Back To Normal In Q3 Financial Report

MGM Resorts International reports the company has rebounded from the drop in bookings and increase in cancellations following the MGM-owned Mandalay Bay shooting which was touted to be the worst mass shooting in US history.

MGM reported its third quarter financial and operating results this week, its first financial report since the October 1 incident, where a gunman openly fired at concertgoers on the Strip from his suite at the Mandalay Bay. The shooting was part of the alarming trend of attackers targeting concerts. Prior to the Las Vegas concert shooting, an attack was made at an Ariana Grande’s concert in Manchester, England and earlier a rock concert in Paris, France.

According to Chief Executive Officer Jim Murren, Mandalay Bay halted all its promotional efforts after the incident. As an aftermath of the shooting, cancellations of earlier bookings doubled. By the middle of October, the company began to resume its marketing efforts and witnessed the booking rate for Mandalay Bay slowly increasing. Now that a month has passed since the shooting, Murren noted that business has rebounded and is now back to normal levels.

Investors responded positively to the good news released by MGM. Company shares went up by as much as 5.1 percent to reach $33.06 in New York Trading on November 8, which is its highest gain since March 2016. The effects of the October 1 incident did not reflect on the third quarter earnings. Murren believes that the month-long decline in bookings at the Mandalay Bay, in addition to the disruption caused by the reconstruction of Monte Carlo to Park MGM, will significantly impact the company’s fourth quarter results.

KTNV Channel 13 Las Vegas

In a statement, Murren said,

In the fourth quarter, we expect our Las Vegas Strip revenues to decrease by a low to mid-single digit percentage, with non-hotel elements partially offsetting a 5 percent – 7 percent REVPAR decline. Accordingly, we anticipate our fourth quarter Las Vegas Strip Adjusted Property EBITDA margins to decrease by roughly 100 basis points

Zacks Investment Research said that MGM’s third quarter results have hit Wall Street expectations as MGM reported a 12.3 percent increase in revenue to $2.83 billion, which surpassed Wall Street’s predicted $2.77 billion. Revenue per available room for MGM’s Las Vegas Strip resorts was reported at $156, up 4 percent from 2016’s $150. Also within Street estimates is the company’s earnings, which fell to 26 cents per share, or 33 cents per share after adjustment for non-recurring items.

MGM China Holdings Ltd reported a 21 percent decrease in its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA).

Paul Butcher

Hi, I am the Chief Editor of top10casinowebsites.net, this site is dedicated to all thing casino. I have been working around the casino industry for the last 12 years, with different brands. The main purpose of this site is to keep you informed with the latest news and offers around

Share
Published by
Paul Butcher

Recent Posts

LV Sands, Concerned About Online Competition Amid Plan to Build $6bn Casino

Summary: Las Vegas Sands chairman and CEO Rob Goldstein is concerned about the impact of…

4 weeks ago

Biloxi Casino Plans Advance as MGC Considers Two Venues

Summary: Tullis Gardens Hotel and the Tivoli development are in the works. The casinos would…

1 month ago

Rio Hotel & Casino Finishes Phase One of Massive Property Renovation Project

Summary: Rio Hotel & Casino has completed phase one of its multi-year property-wide renovation project.…

2 months ago

Industry Heavyweight Execs Talk Tech Future at TribalNet Conference & Tradeshow

Summary: Monday’s TribalNet Conference & Tradeshow brought together gaming industry executives who discussed the future…

2 months ago

Nevada Regulators Propose Solution for Armed Casino Security Shortage

Summary: The Nevada Gaming Control Board addressed the shortage of armed casino security following the…

2 months ago

Venetian Waiting for Final Approval for $550m Dividend Distribution

Summary: The Venetian in Las Vegas is getting ready for a massive dividend distribution. The…

4 months ago