MGM Resorts International, the owner of such iconic Strip properties as the MGM Grand, Bellagio and New York-New York, announced its second-quarter earnings today. The company also has a 50 percent share of the CityCenter.
Company: MGM Resorts International (NYSE: MGM)
Revenue: $2.58 billion, up 4 percent from the same quarter last year.
Earnings: $105.5 million, markedly better than last year’s $93 million loss.
Earnings per share: 21 cents compared to last year’s 19 cents.
What it means: The company cited strong domestic growth driven by its Las Vegas properties, with casino and room revenue both up from the previous year. Domestic casino revenue increased by 6 percent from last year, and revenue per available room on the Strip was $135 compared to last year’s $127.
Net revenue at CityCenter was up to $304 million, a 9 percent increase from last year’s $280 million. The Aria, a relative Strip newcomer that opened at the CityCenter complex in 2009, boasted higher net revenue, occupancy rate and hold percentage on table games compared to last year.
In China, MGM’s net revenue increased by 1 percent to $828 million. Main-floor table games were up by 41 percent, but VIP table-game revenue decreased by 18 percent. VIP table-game hold percentage went down to 2.7 percent from 2.9 percent last year.
Additionally, the current quarter included a settlement of 2005 to 2009 IRS audits that resulted in a $31 million benefit for the company. MGM shares are up nearly 62 percent from last year.
Quote: “CityCenter resort operations continue to improve, while in Macau we grew cash flow and margins due to a higher contribution of revenues from our main floor business. These results clearly reflect the success of our investments and strategies in our existing properties, while we are building MGM Cotai and beginning construction on MGM National Harbor.” — Chairman and CEO Jim Murren