MGM Mirage to post 2Q earnings on Monday

01.08.2009, LAS VEGAS -- MGM Mirage is to report its second-quarter financial results before the market opens on Monday. Below is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Las Vegas-based MGM Mirage ( MGM - news - people ) is the world's second- largest gambling company by revenue, the owner and operator of 16 casinos in Nevada, Mississippi and Michigan. It also has 50 percent investments in four other properties.

The success of the company is tied to its ability to develop and operate casino resorts. Its primary shareholder - who lost his majority interest in the company in May when the company issued new stock - is billionaire investor Kirk Kerkorian.

Its current project, the $8.5 billion CityCenter complex on the Las Vegas Strip, is touted as the most expensive privately financed project in United States. CityCenter is scheduled to begin opening in phases this year.

Opening CityCenter has been the primary focus of MGM Mirage for much of this year. Its financing for the project faced challenges that put the project in danger of not being completed, and its relationship with partner Dubai World was tested as the investment arm of the Persian Gulf state questioned whether MGM Mirage could survive long enough to see CityCenter through.

MGM Mirage put immediate fears to rest April 29 when it announced that it agreed with lenders and Dubai World to guarantee CityCenter's funding. The company used its Circus Circus Las Vegas casino and adjacent land as collateral for the project.

Last month, the company said in a Securities and Exchange Commission filing that there was no longer substantial doubt about its ability to continue as a company. Its auditors had questioned MGM Mirage's ability to continue in March, after the company delayed its annual report and said it might default on its debt.

BY THE NUMBERS: Analysts surveyed by Thomson Reuters expect MGM Mirage to lose 9 cents per share on $1.49 billion in revenue, a 122 percent decrease from last year.

ANALYST TAKE: Analysts have expressed worries that CityCenter's opening will cannibalize MGM Mirage's other resorts in Las Vegas and hurt other operators as they look to bounce back from a recession that has dampened tourism and pushed room rates down across the city.

"It is clear to Vegas followers that the incremental capacity coming online over the next 12 months will again negatively impact same-property revenue per available room, gaming revenue and earnings before taxes, depreciation and amortization," said Deutche Bank analyst Andrew Zarnett.

More than 6,000 rooms are planned at the six-tower partnership.

WHAT'S AHEAD: Investors will want an update on CityCenter's progress and more details about its plans to fill rooms and sell condominiums. It will also want to know how the opening will affect Las Vegas, though company officials have said they believe it will boost tourism overall by giving visitors a new must-see destination on the Las Vegas Strip.

STOCK PERFORMANCE: MGM Mirage's stock price is down from its 52-week high of $38.49, and was trading at $7.14 on Friday afternoon. The shares closed the first quarter at $2.33.

Über MGM Resorts International Operations, Inc.:

MGM Resorts International (NYSE: MGM) ist ein globales Unterhaltungsunternehmen des S&P 500 mit nationalen und internationalen Standorten, das erstklassige Hotels und Casinos, hochmoderne Tagungs- und Konferenzräume, unglaubliche Live- und Theaterunterhaltungserlebnisse bietet und eine umfangreiche Auswahl an Restaurants, Nachtleben und Einzelhandelsangeboten.

Das MGM Resorts-Portfolio umfasst 29 einzigartige Hotel- und Destination-Gaming- Angebote, darunter einige der bekanntesten Resort-Marken der Branche.

Wir betreiben ein Portfolio von Resorts in Las Vegas, darunter Bellagio, MGM Grand, Mandalay Bay und The Mirage, The Signature, Excalibur, Luxor, New York-New York, Park MGM und weitere. In Las Vegas haben wir auch eine bedeutende Beteiligung an CityCenter, dem legendären Hotel, Kongress-, Einzelhandels- und Restaurantkomplex im Herzen des Las Vegas Strip mit ARIA Resort und Casino und Vdara Hotel und Spa, Crystals Retail und Veer Eigentumswohnungen.

Das Unternehmen expandierte in den USA und auf der ganzen Welt und erwarb kürzlich den Betrieb des Empire City Casino in New York und des Hard Rock Rocksino in Ohio, das in MGM Northfield Park umbenannt wurde.

Im Jahr 2018 eröffneten MGM Resorts MGM Springfield in Massachusetts, MGM COTAI in Macau und das erste Hotel der Marke Bellagio in Shanghai.

Die über 80.000 Mitarbeiter von MGM Resorts weltweit sind stolz darauf, dass ihr Unternehmen als eines der weltweit am meisten bewunderten Unternehmen des FORTUNE Magazine anerkannt wurde.

--- Ende Artikel / Pressemitteilung MGM Mirage to post 2Q earnings on Monday ---


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