{"id":240,"date":"2024-06-28T03:42:29","date_gmt":"2024-06-28T00:42:29","guid":{"rendered":"https:\/\/winportnodepositbonus.icu\/2024\/06\/28\/mgms-sin-city-success-overshadowed-by-macau-loss\/"},"modified":"2024-06-28T03:42:29","modified_gmt":"2024-06-28T00:42:29","slug":"mgms-sin-city-success-overshadowed-by-macau-loss","status":"publish","type":"post","link":"https:\/\/winportnodepositbonus.icu\/2024\/06\/28\/mgms-sin-city-success-overshadowed-by-macau-loss\/","title":{"rendered":"MGM&#8217;s Sin City Success Overshadowed by Macau Loss"},"content":{"rendered":"<p><iframe loading=\"lazy\" width=\"800\" height=\"450\"\n    src=\"https:\/\/www.youtube.com\/embed\/vXynEsesfo8\"\n    frameborder=\"0\"\n    allow=\"accelerometer; encrypted-media; gyroscope; picture-in-picture\"\n    allowfullscreen><br \/>\n<\/iframe><\/p>\n<p>Sin City propelled MGM&#8217;s third-quarter earnings, but the Chinese gambling hub resulted in a $1 billion deficit.<\/p>\n<p>MGM declared that Sin City revenue hit record highs, exceeding the previous year&#8217;s figures, but a $1 billion impairment charge related to its Chinese subsidiary led to a loss for the operator.<\/p>\n<p>Sin City fueled MGM&#8217;s third-quarter revenue growth, but Macau&#8217;s impairment charges resulted in a $1 billion loss.<br \/>\nTotal revenue climbed 26.2% to $3.14 billion.<\/p>\n<p>A large portion of this increase stemmed from Sin City, generating $2.3 billion, up 66.6%, a record high. Unlike the previous year, hotel revenue in Sin City surpassed casino revenue.<\/p>\n<p>&#8220;We are proud to announce our best-ever quarterly results on the Sin City Strip, both in terms of revenue and adjusted property EBITDAR, driven by the continued strength of our entertainment and convention offerings,&#8221; said Bill Hornbuckle, CEO and president of MGM Resorts.<\/p>\n<p>MGM&#8217;s regional operations revenue reached $973.9 million, up 5.2%.<\/p>\n<p>Conversely, MGM China&#8217;s revenue plunged to $87.5 million, down 69.8% from the third quarter of 2021 (which was already affected by the COVID-19 pandemic). This quarter, Macau implemented lockdowns, closing all casinos following a local outbreak.<\/p>\n<p>MGM&#8217;s corporate and other revenue amounted to $53.6 million.<\/p>\n<p>Expenses skyrocketed significantly this quarter to $4.44 billion, but this was primarily due to non-operating factors. The company paid $1. <\/p>\n<p>MGM Resorts International&#8217;s administrative and general costs climbed to $21 billion, a surge of nearly 50%, primarily driven by escalating rental fees on numerous MGM properties.  A large portion of these properties have been transferred to real estate investment trusts in recent years.<\/p>\n<p>Casino earnings rose marginally to $653.6 million, lodging revenue increased to $256.1 million, and food and beverage income leaped by 75.2% to $529 million.<\/p>\n<p>Macau Amortization<br \/>\nHowever, the most substantial expenditure originated from amortization. The firm recorded over $1 billion in amortization costs due to the expiration of its Macau sub-concession at the year&#8217;s end.<\/p>\n<p>In early 2013, the operator secured rights to utilize a plot of land in Macau&#8217;s Cotai area until 2038. As a consequence, it amortized the Macau sub-concession over that span, assuming continued operations in Macau until that date.<\/p>\n<p>However, with the implementation of the Special Administrative Region&#8217;s new gaming legislation, which maintained the same number of operators but only established primary concessions, no longer permitting sub-concessions, the company decided to alter its strategy. Consequently, the &#8220;useful life&#8221; of the sub-concession and land use rights were adjusted to last only until the year&#8217;s end.<\/p>\n<p>As a result, the company effectively recognized 16 years of amortization in one instance, leading to a massive expense.<\/p>\n<p>&#8220;We have been amortizing that intangible asset over a period between 2031 and 2038,&#8221; stated Chief Financial Officer Jonathan Halkyard. <\/p>\n<p>Following the release of a legal stipulation in June, we collaborated with the external auditing firm Deloitte and determined that this is a novel allowance that we will commence implementing after December.<\/p>\n<p>The existing intangible asset-based allowances must be depreciated by the conclusion of this year.<\/p>\n<p>Furthermore, the company declared a $1.6 billion profit from the disposal of its city-center property in the third quarter of 2021, which also contributed to the negative expenditures and affected year-over-year comparisons.<\/p>\n<p>After subtracting these expenses, and a $17.5 million loss from its non-consolidated subsidiaries, such as its joint venture with Entain, BetMGM, MGM&#8217;s third-quarter operating deficit was $1.05 billion. This represents a significant contrast to the $1.89 billion operating gain in the corresponding period of the previous year.<\/p>\n<p>Excluding these extraordinary costs, EBITDAR reached $1.1 billion, signifying a 23.4% increase.<\/p>\n<p>Interest and taxes resulted in the business ultimately incurring a loss of $1.06 billion, compared to a profit of $1.34 billion in the same period of the previous year.<\/p>\n<p>During this quarter, MGM also finalized the acquisition of European online operator LeoVegas. MGM acquired LeoVegas for SEK 61.00 per share in cash, resulting in a total transaction value of $604 million.<\/p>\n<p>Upon announcing the acquisition offer, MGM stated that it would facilitate the expansion of the business&#8217;s online operations into markets beyond North America, such as Europe, where BetMGM currently conducts business.<\/p>\n<p>Sign up for the iGaming news newsletter. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sin City propelled MGM&#8217;s third-quarter earnings, but the Chinese gambling hub resulted in a $1&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v22.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MGM Soars in Vegas, But Macau Drags Down Earnings<\/title>\n<meta name=\"description\" content=\"MGM\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/winportnodepositbonus.icu\/2024\/06\/28\/mgms-sin-city-success-overshadowed-by-macau-loss\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"MGM&#039;s Sin City Success Overshadowed by Macau Loss\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"MGM\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:url\" content=\"https:\/\/winportnodepositbonus.icu\/2024\/06\/28\/mgms-sin-city-success-overshadowed-by-macau-loss\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:site_name\" content=\"Your Go-To Destination for Licensed Casino Games &amp; Latest News\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"article:published_time\" content=\"2024-06-28T00:42:29+00:00\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"author\" content=\"admin\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" class=\"yoast-seo-meta-tag\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/winportnodepositbonus.icu\/2024\/06\/28\/mgms-sin-city-success-overshadowed-by-macau-loss\/\",\"url\":\"https:\/\/winportnodepositbonus.icu\/2024\/06\/28\/mgms-sin-city-success-overshadowed-by-macau-loss\/\",\"name\":\"MGM Soars in Vegas, But Macau Drags Down Earnings\",\"isPartOf\":{\"@id\":\"https:\/\/winportnodepositbonus.icu\/#website\"},\"datePublished\":\"2024-06-28T00:42:29+00:00\",\"dateModified\":\"2024-06-28T00:42:29+00:00\",\"author\":{\"@id\":\"https:\/\/winportnodepositbonus.icu\/#\/schema\/person\/7fe3f8540cfe191b1464d5c1c2f0a7f0\"},\"description\":\"MGM\",\"breadcrumb\":{\"@id\":\"https:\/\/winportnodepositbonus.icu\/2024\/06\/28\/mgms-sin-city-success-overshadowed-by-macau-loss\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/winportnodepositbonus.icu\/2024\/06\/28\/mgms-sin-city-success-overshadowed-by-macau-loss\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/winportnodepositbonus.icu\/2024\/06\/28\/mgms-sin-city-success-overshadowed-by-macau-loss\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Homepage\",\"item\":\"https:\/\/winportnodepositbonus.icu\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"MGM&#8217;s Sin City Success Overshadowed by Macau Loss\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/winportnodepositbonus.icu\/#website\",\"url\":\"https:\/\/winportnodepositbonus.icu\/\",\"name\":\"Your Go-To Destination for Licensed Casino Games &amp; Latest News\",\"description\":\"Unleash your gambling potential through our up-to-date news, comprehensive reviews, and expert articles. 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