MGM Domestic Revenue Fell 1.6% YoY in Q3; Casino Revenue Up Slightly

The Short Take:

  • MGM Resorts’ Q3 2018 domestic revenue fell by 1.6% compared to the same quarter last year
  • The only domestic revenue segment that saw a YoY increase was Casino revenue, which rose by a tiny 0.5%
  • The worst performing domestic revenue segment was Rooms which fell 4.6% YoY

In the third quarter of 2018, total domestic revenue at MGM Resorts declined 1.6%, from $2.267 billion in Q3 of 2017 to $2.231 billion in Q3 2018.  MGM breaks down domestic revenue into four segments: Casino, Rooms, Food & Beverage and Entertainment & Retail.  We’ll take a look at how each segment drove total domestic revenue.

Q3 2018 MGM Domestic Revenue by Segment:

Casino revenue was the only domestic revenue segment that saw a YoY increase in Q3 2018.  And it was a very slight increase – just 0.5%. The $871,974 million in casino revenue was up $4.45 million compared to the same quarter last year.  This year, the casino revenue made up 39.1% of the quarterly domestic revenue.

Q3 2018 MGM YoY Growth of Domestic Revenue by Segment:

All three remaining domestic revenue segments saw YoY decreases.  The segment with the smallest decline was Entertainment & Retail. This segment saw a 1.5% decline compared to last year, coming in at $533,629 million.  This was a $5.23 million decline versus 2017.  Entertainment & Retail made up 15.4% of total domestic revenue during the third quarter.

Food & Beverage did slightly worse.  This domestic segment’s revenue fell $8.85 million compared to the same quarter last year, but on a percentage term the segment fell -1.8%.  21.6% of total domestic revenue came from Food & Beverage in Q3.

The worst performing domestic revenue segment in Q3 2018 was the Rooms segment.  Rooms revenue fell 4.6% year-over-year.  The Q3 Rooms revenue totaled $533.6 million, a $25.88 million fall from Q3 2017.  23.9% of total domestic revenue is generated by the Rooms segment.

All-in-all we saw disappointing domestic performance for MGM on the revenue front. What makes things slightly worse is that the results for Q3 2018 include several weeks of revenue from the newly opened MGM Springfield which was not in operation in Q3 2017.  Without the revenue from Springfield included this year, then the YoY comparisons would have been even worse.

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