MGM Resorts’ new casinos allow it to survive ‘challenging’ Q3

Casino operator MGM Resorts claims it performed respectably in a “challenging” third quarter, although things would have been much less respectable without contributions from two new venues.

Figures released Tuesday show MGM’s overall revenue hitting $3b in the three months ending September 30, up 7% from the same period last year. But operating income was down 16.6% to $410.9m and net income slipped 2.6% to $142.9m.

MGM’s domestic resorts reported revenue down 1.5% to $2.23b, despite an extra $42.5m contributed by MGM Springfield, which opened in Massachusetts in late August. Overall domestic resorts earnings were down 12% to $627m, in part due to opening expenses surrounding MGM Springfield.

MGM’s Las Vegas Strip resorts were particularly hard hit, reporting hotel occupancy down two points year-on-year, as well as declines in table drop (-10.5%), table win (-1.4 points), slots handle (-2%), and revenue per available room (-3.9%).