Oct. 31–SPRINGFIELD — MGM Springfield brought in $42.5 million in net revenue over its first five weeks of operation, according to the third-quarter earnings report released this week by parent company MGM Resorts International.
That revenue resulted in earnings of $7.6 million. MGM reported $31.6 million in start-up preopening expenses recorded just in the third quarter.
Regarding MGM Springfield, MGM Resorts chairman and CEO Jim Murren had this to say during a conference call with stock analysts:
"While it's still in its early days, we're encouraged that the resort is performing in line with our expectations on both the gaming and non-gaming side."
This third quarter report, for the three months ending Sept. 30, counts only a short period of operations at MGM Springfield. The nearly billion-dollar casino opened Aug. 24.
MGM Springfield was a bright spot in what was otherwise a lackluster quarterly earnings report for MGM Resorts International. In his remarks, Murren acknowledged that all Las Vegas resorts, not just MGM, saw a bit of a summer slump in business. It's something he promised to rebound from with a strong holiday season and upcoming high-profile boxing matches.
Casino revenue for the third quarter across all of MGM properties increased 1 percent compared to the same three months a year earlier. MGM told shareholders Wednesday that this was due primarily to the opening of MGM Springfield. Casino revenues decreased 3 percent on a same-store basis — that is not counting the new MGM Springfield — compared to the prior year quarter.
Earlier this month, the Massachusetts Gaming Commission reported that MGM Springfield collected nearly $27 million in gross gaming revenue in its first month of operation. That's a slightly different time frame than referenced in the MGM earnings report.
"Our third quarter operating performance exceeded our expectations despite the tough year on year comparison, resulting from robust casino business and an exceptionally strong event calendar last year." Murren said in a news release. "During the quarter, we successfully opened MGM Springfield, which has been well received by our customers."
MGM Resorts International also told investors this week that its spinoff real estate arm, MGM Growth Properties, will potentially buy the real estate at MGM Springfield along with Bellagio, Circus Circus Las Vegas, and MGM Grand Las Vegas.
The sale would generate revenue for MGM and real estate investment trusts like MGM Growth Properties enjoy tax advantages.
MGM reported earnings of 26 cents a share. That 's the same number it reported in the third quarter of 2017.
The company's stock, ticker symbol MGM on the New York Stock Exchange, traded at $26.34 at midday Wednesday. That was up $1.15 or 4.5 percent on the day.
MGM also distributed a $64 million quarterly dividend of 12 cents per share in the third quarter and repurchased $176 million of the its own stock in the third quarter.
