The coronavirus pandemic has caused losses to MGM Resorts.
Compared with the $238 million in operating income recorded in the third quarter of 2019, this is a staggering drop. These figures refer to income or losses after deducting operating expenses such as wages and equipment.
The owners of 10 resorts on the Las Vegas Strip reported a net income of $1.1 billion in the third quarter, a 66% decrease.
Chief Executive Bill Hornbuckle (Bill Hornbuckle) said on Thursday’s earnings call: “In this uncertain situation, we are making growth plans.” “We are entering the end of the fiscal year and are looking forward to the future. Hopeful, but cautious.”
Casinos in Nevada reopened on June 4 under new restrictions to slow the spread of COVID-19, including reduced occupancy rates, increased space between gamblers, and strict restrictions on conferences and meeting venues, which are the result Factors in the severe decline in earnings in the third quarter.
The occupancy rate in the third quarter was 44%. Hornbacker said it is a challenge to increase the traffic volume during the week, because the practice has not yet resumed.
MGM opened all hotels on the Las Vegas Strip: Bellagio, MGM Grand, New York, New York, Excalibur, Luxor, Mandalay Bay, Aria, Vidara, Mirage and MGM in the park.
The net income of these properties was US$481 million, down 68% from last year.
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The performance of the third quarter improved compared to the previous quarter, when MGM Resorts properties continued to close due to COVID-19, resulting in an operating loss of US$1 billion.
MGM’s August layoffs affected 18,000 employees, accounting for a quarter of the 68,000 employees employed by casino companies before the pandemic.
Since March, all U.S. hotels and gaming industries have been closed, and laid-off employees have been on vacation.
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