Pressemitteilung MGM Mirage to spend

30.07.2005, Lesen Sie hier den Bericht über «MGM Mirage to spend».

The company reports record second quarter results

(US).- MGM Mirage executives said the company will embark on an aggressive capital spending program to upgrade its newly purchased Mandalay Resort Group casinos by adding noncasino attractions as well as upgrading casino floors and hotel rooms. The company informed that quarterly profit climbed 35%, and that it shares rose nearly 5%, hitting an all-time high.


The company reported profit of us$ 141.2 million in the second quarter compared with earnings of us$ 104.7 million a year ago.

After announcing the company’s second-quarter earnings report, MGM Mirage President and Chief Financial Officer Jim Murren said the company expects to spend "hundreds of millions of dollars" over the next several years as part of a "long-term commitment" to upgrade the Mandalay properties. Executives are "taking input from employees" to evaluate what form the upgrades will take and will likely have more information in the coming months, Murren said.

The company has already begun the process of installing new slot machines and slot software systems at Mandalay properties, a process that will be largely in place by the end of March. Only about 24% of machines at Mandalay Bay, Luxor and Excalibur were outfitted to accept and dispense paper tickets instead of coins, an upgrade favored by players, executives said. Close to 20% of the slots at those properties were at least five years old, they said.

MGM Mirage’s April acquisition of Mandalay Resort Group helped boost the company’s profit by 35% in the second quarter, though executives said the company’s previously-owned properties are benefiting from improvements and strong business trends in Las Vegas.

MGM Mirage has also squeezed a higher profit out of the Mandalay properties by using its larger and more aggressive sales and marketing team to attract customers, Murren said. "We saw an immediate stimulation in revenues and profits," including 50,000 more occupied room nights at Mandalay hotels in the second quarter than the 2004 quarter, he said.

The company reported profit of us$ 141.2 million in the second quarter compared with earnings of us$ 104.7 million a year ago. MGM Mirage said its adjusted quarterly earnings were the highest in company history.

Casino revenue rose 39% to us$ 764.4 million and non-casino revenue was up 83% to us$ 951.6 million. Excluding Mandalay properties, casino revenue rose 4% and non-casino revenue rose 19%. Slot revenue was up 7%, excluding the Mandalay assets. Bellagio’s slot revenue rose about 30% and MGM Grand’s slot revenue rose 13%.

Bellagio’s performance has improved since the April debut of Wynn Las Vegas nearby, executives said. Room rates were up in the quarter and gambling volume at baccarat, a game favored by high- rollers, was the strongest in history, they said. "It’s done as we expected and it’s obviously grown the market," Murren said of the Wynn resort. "The customers are speaking very loudly that they love MGM Mirage on the high end."

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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