MGM Resorts reports 16 percent jump in second quarter revenue

The opening of MGM Resorts International’s National Harbor property near Washington D.C. and the acquisition of complete control of Atlantic City’s Borgata continue to pay off for the company, which reported second-quarter earnings Thursday.

Las Vegas-based MGM saw revenue rise 16.3 percent to $2.64 billion for the quarter that ended June 30, but earnings fell 53 percent to $241.6 million compared with the same quarter a year earlier.

Much of the revenue increase was attributed to National Harbor, which Chairman and CEO Jim Murren said Thursday has become Maryland’s leading casino property. National Harbor contributed net revenue of $177.8 million to the company, which would have ranked it fourth among nine Las Vegas properties not including CityCenter.

“National Harbor couldn’t be doing better,” Murren told investors in the company’s earnings conference call.

Borgata, which contributed $209.4 million in revenue and is Atlantic City’s market leader, was acquired when MGM bought out a 50-50 partnership with Boyd Gaming Corp. for $900 million a year ago.

Murren said MGM would continue to focus on profitability and operational efficiency as it anticipates several big events in the months ahead.

The company is expecting a big third quarter when it hosts two major fights, including the Floyd Mayweather-Conor McGregor spectacle Aug. 26.

MGM’s convention business continues to thrive and the company expects to open a new property just off Macau’s Cotai Strip in the fourth quarter and a new resort in Massachusetts in the middle of 2018.

“We remain squarely on our path to generate the best possible cash flow performance and return value to our shareholders,” Murren said. “This quarter’s results clearly demonstrate that.”

But despite the optimism, Wall Street analysts predicted MGM would do better and the company missed earnings projections.

The company’s Las Vegas revenue is down, attributed to lower table-game hold.

This is a breaking news story. Check back here for updates.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.