MGM suffered profound revenue loss in its Q2 of this year, but its margins have risen thanks to its efforts to cut down on its payroll to the core.
Numbers posted last Thursday indicate that the firm generated revenue worth $289.8 million during the previous three months ending the 30th of June, a decrease of 91 percent compared to the same period last year. The firm declared an earnings loss worth $492 million against $763.3 million it recorded last year. Net Loss attributed to the firm came down to $857 million against its net income of $43.4 million in the second quarter of 2019.
The company’s Las Vegas operation re-opened on the 4th of June after a prolonged shutdown and reported a 90 percent decline in revenues to $151 million, while their U.S regional operation declined 90 percent to $89 million.
But, comparing post-reopening activities to the same period in 2019, the Vegas margins rose 450 points. Elsewhere in Macau, the firm’s China joint saw its revenue drop 95 percent to $33 million due to travel restrictions from Hong Kong and the Mainland to Macau, which cut of the movement of customers.
MGM has managed to re-open 14 properties out the 18 based in the U.S, and the firm’s Grand Detroit outfit is scheduled to re-open on the 7th of August. With regards to regional operations, that means only the Empire City in New York would be out of operation for a while longer.
Two casinos in Vegas, the Park MGM, and Mirage, are yet to re-open, the management noted that the two would remain out of commission till the end of 2020.
MGM noted that it expects revenues worth $450 million, which is well below what is recorded in 2019. The firm believes the cuts they have made are sustainable. The firm is still thinking about permanent rollbacks on particular lower value amenities like full room services and Buffets.
Within Macau, MGM celebrated the easing of restriction for those getting back to China’s Guangdong province. Although China is yet to state when it might resume issuance of Individual Visit Schemes (IVS), this past Thursday, The Guangdong province announced plans to continue issuing non-tourist visas, which led the MGM to believe that IVSs may come back as early as September.