MGM Posts Narrower Losses
(Reuters) - MGM Resorts International posted weaker-than-expected bottom-line results for the third quarter, injure by lower revenue at its China operations.
Shares fell 3.9% to $22 in recent premarket trading. The company has seen traffic increase at its Las Vegas hotels and casinos and has generally done well in Macau. Beyond these core markets, MGM Resorts, like its rivals, is looking to broaden its market in to Japan following momentum in the country toward legalized gambling.
Overall, MGM Resorts reported a loss of $20.3 million, or four cents a share, compared with a year-earlier loss of $22.3 million, or five cents a share.
Revenue edged up 0.9% to $2.49 billion. Analysts polled by Thomson Reuters expected per-share profit of six cents and revenue of $2.49 billion.
At MGM’s wholly owned domestic resorts, which contain properties on the Las Vegas Strip and others throughout the U.S., revenue rose 2% as growth in rooms revenue offset a decline in casino revenue. Revenue per available room, a key measure of performance in the lodging industry, rose 6% at the company’s Las Vegas Strip resorts, while occupancy improved to 95% from 93% a year earlier.
The average daily rate for the Las Vegas Strip resorts climbed 3.1%. MGM China’s revenue fell 2% to $794 million, as VIP table games turnover decreased 19%. However, main floor table games posted a 34% increase in revenue.
