Las Vegas Helps MGM Make Up for Macau Losses
MGM Resorts' revenue slipped 11% in the first quarter as the casino owner hit turbulence with its Macau holdings. A declawed Chinese economy and heightened regulation of the nation's gambling industry triggered a 45% dive in VIP table revenue and cut overall MGM China revenue by one-third, to $630.1M. In a reversal from recent years, the company's domestic operations—especially those in a healthy Las Vegas—provided more cause for celebration than Far East holdings.
Occupancy rates at MGM's hotels on the Strip slid to 90% from 92%. But revenue per available room climbed 1% in the company's Sin City lodings thanks to a 3.4% average room rate hike. Its stake in the ambitious, nearly 17M SF CityCenter mixed-use behemoth also sweetened the pot, as income on MGM's share soared to $101.6M from $14M.