Supplier News
US – MGM quarter beats analyst estimate
By Phil - 9 August 2013
Gains in Las Vegas and the safety net of Macau saw MGM Resorts International report a quarterly profit that surpassed analysts’ expectations.
Revenue increased by 6.8 per cent to US$ 2.5bn, compared to the average analyst estimate of US$ 2.42bn.
While Las Vegas casinos have struggled to return to pre-recession growth as consumer spending has remained weak, MGM Resorts reported gains in its operations there during the quarter. Strip earnings before interest, taxes, depreciation and amortization rose 15 per cent, as casino revenue climbed seven per cent, and hotel sales added five per cent.
Jim Murren, MGM Resorts International Chairman and CEO, said: “We continue to see broad-based Las Vegas improvement as our Strip EBITDA increased 15 per cent, driven by a seven per cent increase in casino revenues and a five per cent increase in hotel revenues. A strong performance at MGM China led to another quarter of record results, driven by higher volumes in both mass market and VIP.”
Adjusted property EBITDA increased by nine per cent to US$596m, beating the average analysts’ estimate of US$576.6m. MGM China saw GGR of US$ 835m, an increase of 18 per cent from 2012.
