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MGM Resorts 2nd-quarter loss narrows; results top analysts' expectations

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(Globalpost/GlobalPost)

LAS VEGAS, Nev. - MGM Resorts International's second-quarter loss narrowed as revenue improved thanks to increased consumer spending.

Its adjusted results and revenue topped analysts' estimates. The stock rose almost 6 per cent in premarket trading.

The casino operator behind brands including Bellagio, The Mirage and MGM Grand said Tuesday that the Las Vegas Strip's performance continues to improve.

The gambling mecca suffered during the recession as consumers pulled back on their discretionary spending. But with people now feeling more confident about the economy, consumers that stayed away from casinos are returning and those continued to visit but limited their spending are beginning to spend more.

MGM Resorts lost $93 million, or 19 cents per share, for the period ended June 30. That compares with a loss of $145.5 million, or 30 cents per share, a year ago.

Excluding charges of 23 cents per share in the latest quarter, it earned 4 cents per share.

Analysts polled by FactSet predicted adjusted earnings of a penny per share.

Shares rose 36 cents, or 2.2 per cent, to $16.91 in trading Tuesday.

Revenue for the Las Vegas company rose 7 per cent to $2.48 billion from $2.32 billion, as people spent more on gambling, lodging, food and drinks. Wall Street expected $2.42 billion in revenue.

At MGM China, revenue rose 18 per cent to $835 million. Its adjusted earnings climbed 10 per cent $205 million, the highest performance for a quarter ever. MGM China's board also announced a dividend of $113 million. The dividend will be paid on Sept. 2 to shareholders of record on Aug. 26. MGM Resorts said that it will receive $57 million, which represents its 51 per cent share of the dividend.

MGM China owns the MGM Macau casino-resort. Macau is the only place in China where gambling is legal.

http://www.globalpost.com/dispatch/news/the-canadian-press/130806/mgm-resorts-2nd-quarter-loss-narrows-results-top-analysts-ex