MGM looks to diversify operations following difficult 2020

MGM Resorts lost $1.03bn in 2020 as revenue fell 60.0% to $5.16bn, while chief executive Bill Hornuckle said it would continue efforts to expand its igaming activities after opting against a firm bid for Entain.

Of its $5.16bn in revenue, MGM made the majority – $2.87bn – from casino operations, though this figure represented a 54.9% year-on-year decline.

Rooms brought in $830.4m, down 65.3%, while food and beverage revenue was down 67.6% to $696.0m and entertainment, retail and other revenue dropped 64.9% to $519.0m.

MGM made a further $244.9m in reimbursed costs, 43.9% less than in 2019.

The operator’s Las Vegas Strip resorts continued to be its main source of revenue, despite the properties’ contribution falling 61.5% to $2.25bn.

Its regional US operations were much more resilient, but revenue still fell 44.6% to $1.97bn.

MGM China saw the steepest drop in revenue amid particularly strict travel restrictions, with revenue down 77.4%, roughly in line with the overall decline in the Macau gaming market in 2020.

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