MGM Resorts posts record losses, sees increasing footfalls by year end as vaccine rollout widens

MGM Resorts has posted a bigger-than-expected loss thanks to the coronavirus-induced COVID-19 pandemic which brought global travel to a standstill; it has however signaled that with increased inoculation of the COVID-19 vaccine, it is likely that demand will pick up later this year.

In a statement it said, it expects demand in Las Vegas to pick up strongly later in the year while adding that gross bookings in January were the strongest since the start of the pandemic.

“We are optimistic with what we see on our books in the third and fourth quarter,” said Chief Operating Officer Corey Sanders said in a post-earnings call.

Furthermore, MGM also said, it expects its sports betting unit, BetMGM, to increase its footprint in twenty markets by the end of this year. The move is aimed at capitalizing on an expected boom in online sports betting that is fuelled by pandemic lockdowns.

Earlier this year in January, MGM walked away from a plan to acquire Entain after the British company rejected its $11 billion takeover approach.

Revenue from the MGM’s main casino business has fallen by 40.9% to $963.8 million. Total revenues fell by 53.1% to $1.49 billion, missing analyst estimates of $1.52 billion, according to Refinitiv data.

Net loss attributable to the company was $447.6 million, equivalent to 92 cents per share, in the quarter ended December 31, compared with a profit of $2.01 billion, or $3.91 per share, a year earlier.

On average, analysts expected MGM to lose 90 cents per share during the fourth quarter.

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