MGM Digital Moves Toward Profitability Despite Brazil Challenges

MGM Resorts International executives said the negative situation in Brazil will not last forever for the company. The company reported revenue of $4.2 billion (£3.1 billion). It reduced its annual net loss by $268 million, to $17 million. Consolidated adjusted EBITDA came in at $403 million.

At the investor call, attention focused on BetMGM Brasil, the joint venture with media giant Grupo Globo. The company's Chairman and CEO, Bill Hornbuckle, said MGM Digital would continue to move toward profitability regardless of the outcome in Brazil. MGM Digital Chief Commercial Officer Gary Fritz said the election result surprised everyone.

Fritz said that after the temporary measure that took effect last month, the company activated an emergency plan in Brazil. As part of this, he said, they had reduced some fixed costs. He thanked the team in São Paulo for staying on the job and for their determination under difficult conditions. BetMGM Brasil was the 36th largest operator in the market according to the Blask Index. However, a restriction on the market by President Luiz Inácio Lula da Silva last month abruptly halted this rapid growth.

The company maintains that it has plans in Brazil regardless of what the future holds. Fritz praised Grupo Globo's knowledge of the region. He said the partner was better positioned than anyone to find its way in the country's noisy environment. He added that the company is closely watching what the Brazilian Congress and the courts will do.