MGM Resorts International (MGM - Free Report) reported fourth-quarter 2019 results, with earnings and revenues missing the respective Zacks Consensus Estimate. Notably, the top line missed the consensus mark in all of the trailing three quarters. Following the results, shares of the company declined 2.3% during the after-hours trading market on Feb 12, 2020.
Adjusted earnings of 8 cents per share missed the consensus mark of 24 cents by 66.7%. However, the company had reported a loss of 3 cents in the prior-year quarter.
Total revenues were $3,185.1 million, which missed the Zacks Consensus Estimate of $3,208 million by 0.7%. Nonetheless, the top line increased 4.3% year over year. The improvement was backed by robust performance of MGM China and Regional Operations.
MGM China’s net revenues increased 6% year over year to $727.4 million, owing to net revenue contribution of $346.2 million from MGM Cotai.
The opening of 25 new-to-market tables at MGM Cotai led to a 31% year-over-year increase in main floor table game wins. However, VIP table game wins also declined 20% from the prior-year quarter’s figure, primarily due to 33% fall in turnover at MGM Macau.
MGM China’s adjusted property EBITDAR (Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) increased 10% to $185.1 million from $168.3 million in the prior-year quarter. Moreover, adjusted property EBITDAR margin was 25.5%, up 100 basis points (bps) from the year-ago quarter’s figure.
Net revenues at Las Vegas Strip Resorts during fourth-quarter 2019 were $1,429.1 million, up 3.9% year over year. However, adjusted property EBITDAR declined 5% year over year and EBITDA margin contracted 256 bps compared with the prior-year quarter’s figure.
During quarter under review, net revenues from the company's regional operations amounted to $899.9 million, up 15% from the prior-year quarter’s tally. The upside can be attributed to revenues of $50 million from Empire City Casino and $68 million from MGM Northfield Park's operations. Adjusted property EBITDAR was reported at $228 million, up 14% from the year-ago quarter’s figure. However, adjusted property EBITDAR margin declined 28 bps to 25.4% year over year.
Casino revenues in the quarter under review fell 4% year over year at the company's Las Vegas Strip Resorts primarily due to 18% decline in table games win driven by Far East baccarat. This was partially offset by a 2% increase in slots win. However, the same increased 18% at its Regional Operations owing to the acquisition of Empire City Casino and the merger of MGM Northfield Park's operations.
At the Las Vegas Strip Resorts, food and beverage revenues rose 9% from the prior-year quarter’s level. The uptick was backed by the ramp-up of newly opened outlets at Park MGM as well as NoMad Las Vegas.
MGM Resorts International Price, Consensus and EPS Surprise