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MGM Resorts International narrow fourth quarter losses on revenue growth

Thursday, February 23, 2012 by Proactive Investors

From North America: Casino and hotel operator MGM Resorts International (NYSE:MGM) posted a narrower net loss in the fourth quarter amid revenue growth and improved occupancy at its Las Vegas Strip properties.

The casino operator, whose properties include the Bellagio, MGM Grand and Mandalay Bay, said its revenue rose 55 percent to $2.3

billion from $1.48 billion, as the company made more from lodging, food and drinks, entertainment, gambling and people shopping.

The 2011 quarter includes MGM China, which runs a Macau casino and went public in Hong Kong in June. Macau, a former Portuguese colony, is the only place in China where gambling is legal.

The company posted a narrower net loss of $113.6 million, or 23 cents a share, compared to a year earlier net loss of $139.1 million, or 29 cents a share.

Excluding one-time special items, MGM lost 21 cents a share, compared with analysts’ estimates of a loss of 20 cents a share, according to Bloomberg.

MGM Resorts said that occupancy at Las Vegas Strip resorts climbed to 87 percent from 84 percent, while the average daily rate improved to $129 from $118. Revenue per available room, also called revpar, grew 13 percent to $111.

Revpar is a key metric to gauge a lodging company’s financial performance of a property.

Gambling revenue rose eight percent, while slot sales grew three percent.

The CityCentre resort in Las Vegas, which is jointly owned with the investment firm Dubai World, had posted a narrower operating loss of $10.3 million from $38.4 million a year ago.

MGM China also declared a dividend of about $400 million, and will be paid March 20. MGM Resorts, which owns 51 percent of MGM China, will get about $204 million.

The company said it had $13.6 billion of debt at year's end, and a cash balance of $1.9 billion, including about $720 million related to MGM China.

It is trying to improve its balance sheet and cut its debt, said Chief Financial Officer Dan D'Arrigo in a statement.

MGM Resorts share price fell 0.92 percent at $14.06 in trade on the New York Stock Exchange on Wednesday.

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