MGM down as analyst cautions on Las Vegas Strip

05.09.2008, Lesen Sie hier den Bericht über «MGM down as analyst cautions on Las Vegas Strip».

NEW YORK - MGM Mirage's stock dropped Thursday as an analyst cautioned that the casino operator's high-end Las Vegas Strip properties are showing signs of weakness in the third quarter to date.

Casino operators, like many other industries, have started to feel pressure as consumers continue to tighten spending due to the housing downturn, diminishing credit and rising food and fuel costs.

Matthew Jacob, an analyst with Majestic Research, said in a client note that his research indicates MGM's high-end Las Vegas Strip sites such as Mandalay Bay and MGM Grand may post a low-single-digit revenue decline for the third quarter. An apparent exception is the Bellagio casino.

This may make investors uneasy, "as relative strength in this segment has helped drive MGM's year-over-year Strip revenue growth in recent quarters," he explained.

MGM also has to worry about the performance of its mass-market Las Vegas Strip properties including Circus Circus and Excalibur, as most may see a double-digit year- over-year third-quarter revenue decline, according to Jacob.

Overall net revenue for the quarter could be slightly below the consensus estimate, Jacob said. Analysts surveyed by Thomson Reuters forecast third-quarter revenue of $1.85 billion, on average.

Shares of Las Vegas-based MGM fell $2.40, or 7 percent, to $32.10 in afternoon trading. Over the past 52 weeks, the stock has traded between $21.65 and $100.50.

Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

forbes.com

Über MGM Grand Hotel and Casino:

Das MGM Grand gehört zu den grössten Hotels der Welt. Der Hotelkomplex besitzt 5'044 Hotelzimmer und ist direkt mit dem Casino verbunden.

Das Casino ist mit seinen 15'930 m2 riesengross und bietet alle Casinospiele an. Die Tischspiele Roulette, Black Jack sind zahlreich vorhanden. Ebenso findet man einen Pokerraum und unzählige Spielautomaten.

Zur Geschichte des MGM Grand Hotel

1973 wurde das original MGM Grand eröffnet. Das Original-Hotel-Casino wurde 1986 von MGM an Bally Entertainment Corp. verkauft und umbenannt ins heutige Bally's.

1993 öffnete das heutige MGM Grand als damals grösstes Hotel der Welt seine neuen Tore.

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