MGM earnings down

Casino Stock Watch – MGM Announces Q3 Results

MGM Resorts International (NYSE: MGM) today reported its third-quarter financial results, with net revenues at $1.5 billion, down 3% excluding reimbursed costs. The company reported that its Las Vegas Strip REVPAR decreased 2% compared to the prior year quarter. Third-quarter casino revenue fell 9% compared to the prior year quarter, with slots revenue down 3% for the quarter. The company’s table games volume, excluding baccarat, dropped 7% in the quarter, while baccarat volume was down 6% compared to the prior year quarter.


The overall table games hold percentage was lower in 2010 than the previous year; in the current year third quarter, the hold percentage was above the midpoint of the company’s normal 18% to 22% while it was slightly above the high end of the range in the 2009 quarter. The company’s room revenue dropped 3% from the prior year. The company achieved 93% occupancy compared to 95% in the prior year quarter with consistent ADR, which led to a 2% decrease in Las Vegas Strip REVPAR.


MGM reported that both Bellagio and Mandalay Bay recorded increases in REVPAR for the third quarter. The net revenue at the company’s regional resorts increased 3% compared to the previous year. MGM Macau reported its best quarter ever and earned operating income of $61.0 million in the third quarter of 2010, which included depreciation expense of $22 million.


MGM recorded a third-quarter diluted loss per share (EPS) of $0.72 compared to a loss of $1.70 per share in the previous year. The current year results include pre-tax impairment charges totaling $357.0 million, or $0.51 per diluted share, net of tax, including pre-tax impairment charges of $182.0 million.


MGM Resorts International is a holding company engaged in gaming, hospitality and entertainment. The company owns and operates casino resorts, which includes offering gaming, hotel, dining, entertainment, retail and other resort amenities.