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MGM Drops as Las Vegas, Macau Revenues Fall

MGM's Las Vegas properties saw revenue drop 66% year-over-year while MGM China saw revenue fall 58%.
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Shares of MGM Resorts  (MGM) - Get MGM Resorts International Report dropped Wednesday after the casino and entertainment company reported a slight fourth-quarter revenue miss after the closing bell. 

The Las Vegas-based company reported revenue of $1.49 billion with an adjusted net loss of 90 cents per share. Analysts were expecting revenue of $1.50 billion with a net loss of 96 cents per share. 

MGM was down 1.29% to $36.00 after closing the day up 1.8% to $36.47 per share. 

“We remain confident in the long-term recovery of our business. We have strengthened our operational foundation through cost efficiencies that position us for sustainable growth, as solutions to the public health crisis accelerate and restrictions continue to ease,” said CEO Bill Hornbuckle.  

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The company reported a 66% decline in revenue to $480 million from its properties on the Las Vegas Strip, while revenues at its MGM China property in Macau dropped 58% year-over-year to $305 million. 

Last month, MGM said that it won't submit an improved bid for U.K. bookmaking and gaming group Entain plc.

MGM, which offered more than $11 billion for the owner of London-based bookmaker Ladbrokes earlier this year, said "limited engagement" from Entain -- which also owns brands such as Coral, BetMGM, bwin, Sportingbet, Eurobet, partypoker and partycasino -- regarding the takeover spurred its decision, but noted it will continue to work with Entain on their online sports betting and gaming joint venture, BetMGM.

MGM noted that it expects BetMGM to be in 20 markets by the end of this year after launching in seven states in 2020. 

Entain told its shareholders in early January to take no action with respect to MGM's offer, and has asked the Las Vegas Strip's largest casino operator for "additional information in respect of the strategic rationale for a combination of the two companies."