MGM Resorts loses $31.9 million in 3rd quarter
Sam Morris / Las Vegas Sun
Las Vegas-based MGM Resorts International, operator of the MGM Grand, Bellagio, Monte Carlo, New York-New York, Mandalay Bay, Luxor, Excalibur, Mirage, Circus Circus and Slots-a-Fun on the Las Vegas Strip, properties in Reno, Henderson, Jean, Mississippi, Illinois and Michigan and partners on properties at CityCenter, in Atlantic City and Macau, reported its third-quarter earnings Thursday.
Company: MGM Resorts International (NYSE: MGM)
Revenue: $2.46 billion (up 9.2 percent from the third quarter of 2012). The company cited improved results at its Las Vegas Strip properties and from its MGM China division in Macau.
Loss: $31.9 million (loss narrowed by 486.6 percent from third quarter of 2012). Double-digit percentage cash flow growth and increased margins on the Strip and in Macau paced the company’s rebound. Revenue per available room was up 3 percent on the Strip and 5 percent at the company’s domestic resort properties. In Las Vegas, the company had increased occupancy and average daily room rates at Luxor, Excalibur and Monte Carlo and every Strip property except the CityCenter hotels and Circus Circus showed occupancy rates of at least 91.5 percent.
Loss per share: 7 cents (loss narrowed by 428.6 percent from third quarter of 2012).
What it means: MGM continued to show financial improvement but still posted losses for the quarter. For the first nine months of 2013, the company has lost $118.3 million compared with losses of $543.9 million for the same period a year earlier.
MGM China revenue increased 22 percent for the quarter. The company has nearly completed foundation work on its new MGM Cotai project in Macau and will begin work on basement and ground floor construction. The resort is expected to open in early 2016.
Convention business in Las Vegas is growing and in 2014 is projected to outpace this year’s numbers. MGM Resorts Chairman and CEO Jim Murren said the company already has hit 88 percent of projected convention booking sales for next year, well ahead of the company’s usual pace.
Quote: “These results are reflective of the continued market share gains from programs such as M life and our focus on international marketing strategies combined with our best-in-class collection of resorts and amenities.” — MGM Resorts Chairman and CEO Jim Murren