Profits slide at MGM Mirage during third quarter

23.10.2003, Lesen Sie hier den Bericht über «Profits slide at MGM Mirage during third quarter».

Gambling giant MGM Mirage Inc. reported a 32 percent drop in third-quarter profits, blaming the dip on lucky gamblers and redevelopment costs, the company announced Tuesday.

The Las Vegas-based company also said it will take a $4 million charge, or 1 cent per share, in the fourth quarter after closing the "Siegfried and Roy" show at The Mirage hotel-casino in Las Vegas. The show's absence will cost the company about $2.5 million a quarter until it's replaced, said Jim Murren, MGM Mirage chief financial officer and treasurer. Murren did not say who will replace the duo after Roy Horn was attacked by a tiger and almost killed Oct. 3 during a sold-out performance.

The nation's third-largest casino operator said it earned $47.2 million, or 31 cents per share in the third quarter, down from $69.6 million, or 43 cents, in the same period a year ago. Excluding pre-opening and startup expenses, property transactions, and other items, MGM said it had adjusted earnings from continuing operations of $54.9 million, or 36 cents a share, down from $84 million, or 52 cents a share. Wall Street analysts had expected 37 cents, according to Thomson First Call, and the company had estimated 35 cents a share, excluding items, in September. "Our third quarter performance was satisfying on many fronts, including an increase in demand for resort travel, and increased spending among our visitors," said Terry Lanni, MGM Mirage chairman and chief executive officer.

Net revenues were $990 million, up 4 percent from last year. The increase was due to strong room rates and non-gambling revenues, particularly food, beverage and entertainment. Non-casino revenue was up 8 percent in the quarter. Casino revenues increased 1 percent in the quarter, but the company took a hit at the Bellagio hotel-casino on the Strip, where table game hold dropped significantly. Hold is the percentage of the amount wagered that the casino keeps. "We were impressed by both casino and non-gaming revenues across the board," said John Mulkey, a Bear Stearns gambling analyst in New York. "Unfortunately, unlucky play at the casino hurt the quarter." MGM Mirage also was affected by capital investments as it pumped $44 million into the Bellagio for room remodeling and expansion. The company is building a $375 million, 925-room tower that's set to open in December 2004.

MGM Mirage also spent $33 million on two new theaters for Cirque du Soleil shows at New York-New York and MGM Grand hotel-casinos. Murren said the company plans to finish its projects before starting any major projects, such as a new casino in Atlantic City or Las Vegas. "What we've decided to do here at the MGM Mirage is finish these capital plans," he said. "I think we want to get through the seventh and eighth innings before we embark on something new in Las Vegas or Atlantic City. It's a matter of when, not if."

MGM Mirage said it is comfortable with analysts' estimates for fourth-quarter earnings of 28 cents a share. MGM Mirage stock dropped 1.82 percent, from $36.20 to $35.54 in trading Tuesday. MGM Mirage owns or operates 16 casinos in Nevada, New Jersey, Mississippi, Michigan and Australia.

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.

--- Ende Artikel / Pressemitteilung Profits slide at MGM Mirage during third quarter ---


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