In the middle of a summer pandemic rebound, the CEO of MGM Resorts International said Wednesday it’s too early to tell if the rise of the delta variant will cool the company’s momentum in Las Vegas.
Bill Hornbuckle made the comments during a virtual quarterly earnings call Wednesday afternoon.
“We have righted this ship, and we’re going full steam ahead,” Hornbuckle said. “At this time, it’s too early to speak to any meaningful impacts to our business, but we are monitoring the situation closely. The pandemic is not completely behind us.”
On Tuesday, health officials in Nevada reported that 1,148 people were hospitalized with COVID-19, a level that hadn’t been seen in the state since January, according to the Associated Press.
Despite the uncertainty surrounding the uptick in COVID-19 cases in Southern Nevada, MGM reported strong second quarter numbers, highlighted by net revenues of $1 billion at its Las Vegas resort properties.
The Las Vegas revenue figure represented a 566% increase from the second quarter of 2020 — when mandatory casino shutdowns in the state knee-capped business levels — but was still down 31% from the pre-pandemic second quarter of 2019.
Tracking another performance measurement during the quarter, however, MGM was nearly identical to the second quarter of 2019.
For the three months that ended June 30, MGM posted an EBITDAR — earnings before interest, taxes, depreciation and amortization — figure of $397 million, just 5% off from the figure for the same period in 2019.
On the hotel side in Las Vegas, occupancy rates continued a steady increase last quarter, settling at 77% for the three months that ended June 30.
Weekend occupancy levels in Las Vegas were near pre-pandemic levels at 94%, though the weekday figure was much lower at 70%.
Hornbuckle and MGM Chief Financial Officer Jonathan Halkyard said weekday occupancies continue to lag largely because of a lack of thin convention and meetings business in Las Vegas.
“We anticipate a continued return of group business in the third and fourth quarters,” Hornbuckle said. “But we continue to believe that full convention business will be solidified during the back half of 2022.”
Hornbuckle said Las Vegas tourism has been “resilient” and added that momentum witnessed in the second quarter only intensified in July.
“July was our best month this year in terms of operating performance,” Hornbuckle said.
Companywide, MGM reported net revenues of $2.3 billion during the second quarter. It posted a net income figure of $105 million, which compared to a net loss of $857 million during the second quarter of 2019.
MGM has 13 casino properties and luxury resorts along Las Vegas Boulevard, anchored by Mandalay Bay on the south end of the Strip and the Mirage near the north end.