MGM Resorts clocks 53% Q4 revenue drop
MGM Resorts reported an astonishing 53 percent revenue drop in Q4 2020 over Q4 2019 in a recent earnings report. It’s another mind-bending number from a year that didn’t ease up on the pain even for a moment. But company officials are betting on their sports betting division, BetMGM to save the day and bring in some much needed cash to the operation.
Over the course of the entire grinding nightmare that was 2020, MGM Resorts’ net revenue came in at about $5.2 billion. While any earnings report that includes billions sounds great, MGM Resorts pulled in closer to $12.9 billion in net revenue 2019. That precipitous drop dragged the company’s net profit down to $1 billion in 2020, compare with $2 billion in 2020.
Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International struck an optimistic tone in the company’s earnings report saying, “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.”
He went on tout BetMGM, the outfit’s US-focused sports betting arm, as the potential revenue savior for the entire company saying, “We are engaged on pandemic response while staying focused on the future. This includes maintaining a strong
balance sheet to seize opportunities and continuing to drive BetMGM, our U.S. sports betting and iGaming
venture. BetMGM gained significant market share throughout 2020 while successfully launching in seven new
states. We expect to be in 20 markets by the end of the year, and are very pleased with the January launches in
Iowa, Michigan, and Virginia.”
MGM Resorts, and every other operator on the planet, is looking towards mass vaccinations and the general re-opening of society later in 2021 to help put their cash flow back on track.