MGM Resorts See Profits Slump On China Weakness
MGM Resorts’ Q1 earnings fell 61% from weakness in China, as the firm’s revenue decreased 26% in the country, to $469M.
The decline in China was partially offset by MGM’s US properties, which saw a 3% revenue increase, as revenue per available room (RevPAR) jumped 8% at the company’s resorts on the Vegas strip, due to high occupancy and daily room rates.
In a statement today, CEO Jim Murren highlighted efforts to right the firm’s course, including the recent IPO of the hotelier’s new REIT MGM Growth Properties, which raised $1.05B through 50 million shares, the Wall Street Journal reports.
The REIT was spun off from MGM Resorts following a string of spinoffs at the end of 2015—just before Congress decided to ban the tax-saving practice.
Overall, MGM’s profits hit $66.8M (12 cents/share) down from $169.8M (33 cents/share) a year earlier. [WSJ]
