MGM Resorts loss narrows; casino revenue improves
MGM Resorts International’s?MGM?+2.18%?second-quarter loss narrowed as both domestic and China casino revenue improved.
The casino operator’s revenue has generally improved over the last two years, thanks to growth in Macau and improved traffic at its Las Vegas hotels and casinos. But the company’s bottom line has been weighed down by charges tied to heavy debt and asset write-downs.
MGM Resorts reported a loss of $93 million, or 19 cents a share, compared with a loss of $145.5 million, or 30 cents a share, a year earlier. The most-recent quarter included a total per-share charge of about 23 cents for impairment and deferred tax valuation allowance, while the year-earlier quarter included a total charge of roughly 18 cents a share. Revenue jumped 6.5% to $2.67 billion.
Analysts polled by Thomson Reuters had most recently forecast earnings of one cent a share on revenue of $2.43 billion.
Operating margin rose to 8.7% from 7%.
MGM owns about a dozen casinos on the Las Vegas Strip and a few elsewhere in the U.S. At its wholly owned domestic resorts, casino revenue increased 2% to $1.54 billion. Table games and slots revenue rose 4% and 3%, respectively.
Revenue per available room at the company’s Las Vegas Strip resorts rose 2.4% while occupancy improved to 95% from 94% a year earlier. The average daily rate for the Las Vegas Strip resorts rose 2.3% to $134.
MGM China’s revenue climbed 18% to $835.1 million, as main floor table games and slots win increased 29% and 4%, respectively. VIP table-games turnover rose 34% from a year ago.
Shares were recently trading 2.7% higher at $17 premarket. The stock has gained 42% so far this year through Monday’s close.