MGM Resorts International (MGM) Q1 adjusted earnings were well above analysts’ expectations, but revenue was weaker than expected, dragged down by Macau.
Net income attributable to MGM rose to $169.9 million, or $0.33 per diluted share, from $102.7 million, or $0.20 per diluted share, a year earlier. The per-share comparison was skewed by a 12 percent jump in the weighted-average number of shares outstanding.
Excluding one-time items, the company earned $0.26 per share in the latest quarter, up from $0.21 per share in the year-earlier period and double the $0.13 per share expected on average by analysts polled by Capital IQ.
Total revenue less promotional allowances edged down to $2.33 billion from $2.63 billion a year earlier, missing analysts’ mean estimate of $2.40 billion.
However, MGM China’s net revenue fell 33 percent to $630 million and main floor table games revenue decreased 13 percent and VIP table games revenue decreased 45 percent.
Macau EBITDA was $159 million, below the Street view for $170 million.
Casino revenue related to wholly owned domestic resorts increased 1 percent from the year-earlier period due primarily to a 5 percent increase in slots revenue as a result of a 9 percent increase in slots volume at the company’s regional resorts.
“With the anticipated difficult comparison of the first quarter behind us, we continue to see strong forward trends for the rest of the year in Las Vegas,” said Chairman and CEO Jim Murren.
According to a note from UBS, it appears the company’s new Cotai property may be slightly delayed. It said the company had indicated its MGM Cotai construction is on the 19th floor of the tower, with only 3 floors done since mid-Feb. It will be topped off in November.
“MGM says Cotai will open Q4’16 versus previous comment of “fall 2016.” It sounds as if some additional labor approvals will need to happen for MGM to meet that target,” the note said.