MGM Resorts Beats Earnings Expectations
November 07 2016 - 9:20AM
Dow Jones News
MGM Resorts International said its third-quarter earnings surged
thanks to a gain related to its recent deals related to the Borgata
Hotel Casino & Spa in Atlantic City, N.J., and growth at its
domestic operations.
Shares rose 4.5% to $27.60 in recent premarket trading as the
results beat expectations.
MGM Resorts in August acquired partner Boyd Gaming Corp.'s 50%
stake in the Borgata and then sold Borgata's real-estate assets to
MGM Resort's spinoff MGM Growth Properties LLC. Under the deal, MGM
Resorts will lease back and operate the resort.
In the three-month period ended Sept. 30, MGM China's revenue
fell 6% to $500 million, as VIP table games revenue dropped 26% and
main floor table games revenue grew 21%.
MGM's wholly owned domestic resorts, which include properties on
the Las Vegas Strip and others throughout the U.S. reported revenue
rose 16% to $1.9 billion. Revenue per available room, a key measure
of performance for the lodging industry, improved by 11% at the
company's Las Vegas Strip resorts, as occupancy rates and average
daily room rates both strengthened.
Over all, MGM Resorts reported a profit of $535.6 million, or 93
cents a share, up from $66.4 million, or 12 cents a share, a year
earlier. Revenue increased 10% to $2.52 billion.
Analysts polled by Thomson Reuters expected per-share profit of
9 cents and revenue of $2.4 billion.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
November 07, 2016 09:05 ET (14:05 GMT)
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