MGM Resorts reports surprise loss, stock drops

Casino resort operator MGM Resorts International MGM, -2.31% reported a surprise loss for its third quarter, and shares fell 5% after hours on Wednesday following the results. The company reported a net loss of around $1.06 billion, or $1.45 per share, compared with a $1.34 billion profit, or $2.77 per share, in same the quarter last year. Revenue rose to $3.42 billion, compared with $2.71 billion in the prior-year period. Adjusted for things like property transactions and losses on investments, MGM lost $1.39 per share. Analysts polled by FactSet expected an adjusted profit of 26 cents per share, on sales of $3.24 billion. MGM recently bought online betting platform LeoVegas for more than $600 million, and submitted its tender for a new 10-year gaming concession in gambling hub Macau. The company, in its results, noted a jump in costs for rooms, food and beverages, as well as a jump in general and administrative costs. Still, executives cited “strong bookings into 2023 in our domestic operations.” Revenue for resorts on the Las Vegas Strip surged to $2.3 billion, compared with $1.4 billion in the prior-year quarter, boosted by the resumption of travel and business events, as well as the inclusion of the Cosmopolitan and Aria resorts in the results. But revenue in the company’s China segment took a big hit due to COVID-related closures and travel restrictions in Macau. Revenue in that segment came in at $87 million, compared to $289 million a year earlier.