MGM Resorts International reported that MGM China Holdings expects Q1 net profit to fall 63% year-over-year to about $272 million.
The New York-listed giant said it expects adjusted earnings before interest, tax, depreciation and amortization to fall 88.6% year-on-year to about $22 million in the three months to the end of March.
Las Vegas-based MGM Resorts International announced through a Macau company that it was responsible for 582 rooms of MGM Macau venues and even larger MGM Kotai properties. The two properties spent about $1.5 million on cash operating expenses every day.
“The maintenance of several travel and entry restrictions on Macau, Hong Kong and certain cities and regions in mainland China has had a significant impact on Macau property visits. This continues to have a significant impact on MGM China Holdings Limited’s operating results.”
MGM Resorts International announced yesterday evening as part of guidance it issued to support a $500 million bond offering. The campaign has since reportedly expanded to $750 million as part of a firm effort to boost liquidity in the context of the coronavirus pandemic.
MGM Resorts International reportedly expects company-wide first-quarter net profit to fall about 29% year-over-year to about $2.3 billion due to underperformance by MGM China Holdings Limited, which is attributed to adjusted earnings before interest, tax, depreciation and amortization, falling 61% to nearly $295 million.
The company says its recent sale of Mandalay Bay Resort, Casino Las Vegas and MGM Grand Las Vegas will bring its first-quarter operating profit to $1.3 billion, up about 250% from a year earlier.