News Column

MGM Resorts Posts Narrower Losses

February 19, 2014

Associated Press

LAS VEGAS (AP) MGM Resorts International's fourth-quarter loss narrowed, helped by reduced expenses.

The casino operator owns and runs 15 properties in Nevada, Mississippi and Michigan. It also has 50 percent investments in other properties in Nevada and Illinois, and the Chinese gambling enclave of Macau.

The company lost $38.3 million, or 8 cents per share, for the period ended December 31. That compares with a loss of $1.22 billion, or $2.50 per share, a year ago.

Analysts, whose estimates typically exclude one-time items, predicted a loss of a penny per share.

Expenses declined to $2.2 billion from $2.72 billion.

Revenue rose 10 percent to $2.51 billion from $2.29 billion. Casino revenue climbed, as did revenue for rooms, food and beverages and entertainment. Wall Street forecast revenue of $2.47 billion.

At wholly owned domestic resorts, revenue per available room improved to $114 from $112. This figure is a key gauge of a lodging company's health. Average daily rate increased to $133 from $130, while occupancy declined slightly to 85 percent from 86 percent.

MGM China reported a 27 percent rise in revenue during the quarter.

MGM China's board also announced a $500 million special dividend on Wednesday. The dividend will be paid on March 17 to shareholders of record on March 10. MGM Resorts will receive $255 million, which is its 51 percent share of the special dividend.

For the year, MGM Resorts lost $156.6 million, or 32 cents per share. In the prior year it lost $1.77 billion, or $3.62 per share.

Annual revenue climbed 7 percent to $9.81 billion from $9.16 billion.

MGM Resorts is working on expanding into several new U.S. markets. It is pursuing projects in Maryland and Massachusetts, expected to open no sooner than 2016.

The Las Vegas company's stock shed 15 cents to $25.70 about 30 minutes ahead of the market opening.

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Original headline: MGM Resorts 4Q loss narrows as expenses decline


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