| G. Michael Dobbs
SPRINGFIELD – While some media outlets have emphasized the fact that MGM Springfield has had a difficult time meeting revenue projections in its first year, the CEO of the company doesn’t seem to be worried.
MGM Resorts International Chairman and CEO James Murren told investment analysts in the company’s quarterly earning call on Oct. 30, “We had another busy and successful quarter with solid results that were in line with our expectations. Looking forward, we feel good about the fourth quarter and for the 2020 financial year given the continued execution of our MGM 2020 plan, healthy market conditions and the ongoing ramp of our newer properties.”
The call’s transcript was posted by the website Seeking Alpha.
He noted the company’s financial status is being helped by its “regional properties” – those outside of Las Vegas.
“Our regional properties continue to perform well in the third quarter with net revenues up 20 percent and EBITDA [earnings before interest, tax, depreciation and amortization] up 27 percent, with the majority of the growth from the inclusion of MGM Springfield, Empire City and Northfield Park, National Harbor and Borgata both delivered strong results during the quarter. And once again, we’re very proud of our regional portfolio with leading market positions in just about every market we’re in.”
Empire City is in Yonkers NY; Northfield Park in Northfield Park, OH near Cleveland, OH; Borgata is in Atlantic City, NJ; and National Harbor is in Maryland, close to Washington D.C.
Murren added, “MGM Springfield continues to ramp. Many initiatives in flight including casino floor reconfiguration, new promotions/tournaments and Asian marketing strategies. September 2019 was the highest baccarat drop month since opening. Hosted four successful Aerosmith shows in August driving 20,000 tickets sales.”
Murren also addressed sports betting and announced there is a new partnership with Yahoo Sports. The company already has partnerships with Major League Baseball, National Basketball Association, Women’s National Basketball Association, National Hockey league and Major League Soccer.
Information supplied to investors by MGM Resorts International Sports noted the company is involved with sports betting in 15 states in some form – either having “applied for access, have brick/mortar casinos or a deal locked in.” The company is looking to gain entry into nine other states.
Massachusetts is currently considering legislation that would legalize sports betting in the Commonwealth.