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Reuters

MGM Resorts International said on Wednesday chief executive officer Jim Murren will step down and the US casino operator withdrew its financial forecast for 2020, as it assesses how the coronavirus epidemic will impact operations.
Wealthy Chinese patronage at Macau and Las Vegas make up a good chunk of business and the virus has clamped down travel and closed companies across China.
MGM said it suspended operations at its two properties in Macau for a government mandated 15-day period, which started on February 5 to prevent the spread of the infection locally.
MGM added that it was difficult to weigh the fallout of the epidemic on its business as the suspension could be extended and customer traffic could fall further at its properties.




Shares were higher earlier after the CEO news and then reversed course to trade down 3 per cent at US$32.70 in late trade.
“Although the outbreak has been largely concentrated in China, to the extent that the virus impacts the willingness or ability of customers to travel to the company’s properties in the US, the company’s domestic results of operations could also be negatively impacted,” MGM said.
Coronavirus: casinos to close in Macau for at least two weeks after hotel worker infected
In Macau, the company said it was posting about US$1.5 million in operating expenses daily across both properties, as it kept some non-gaming operations running to support hotel guests.
The epidemic, which originated in mainland China and has killed more than 1,100 people, has taken a toll on casino operators as travel restrictions and fear of the virus spreading have led to cancellations of trips in the Far East.
“While the coronavirus will clearly have a near-term impact to MGM China, we remain confident that it will not have a long-term impact on our business,” the outgoing CEO said on a post-earnings call with analysts.
Murren, who will step down before completing his contract, will remain CEO and chairman until a successor is named. It was immediately unclear why Murren was stepping down from the top job.
Murren, who has been at MGM since 1998, has been chairman and CEO since 2008.


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MGM Resorts withdraws 2020 forecast as coronavirus epidemic weighs on Macau casino operations

MGM Resorts International operates two casinos in Macau, including the MGM Grand. Photo: Bloomberg

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Wynn Peninsula and Wynn Palace (Cotai), as well as a couple of restaurants are still open for the ‘few remaining guests’ in Macau, says Matt Maddox, the CEO of Wynn Resorts, which operates these hotels. Photo: Reuters

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A closure notice at the Grand Lisboa casino in Macau issued by the Macau government. All casinos in the city will be closed for two weeks from Wednesday to help contain the coronavirus outbreak. Photo: Winson Wong

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MGM Resorts International says Jim Murren, who has been chairman and CEO since 2008, will step down
It is costing the company US$1.5 million a day to maintain non-gaming operations at its two properties in Macau



MGM Resorts International says Jim Murren, who has been chairman and CEO since 2008, will step down.


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