Reuters: Global Markets: MGM Resorts posts smaller-than-expected loss, shares up

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MGM Resorts posts smaller-than-expected loss, shares up Aug 7th 2012, 15:31 By Sue Zeidler Los Angeles | Tue Aug 7, 2012 11:31am EDT Los Angeles (Reuters) - MGM Resorts International (MGM.N) posted a smaller-than-expected quarterly loss as results from operations rose in both its casinos and rooms, particularly in its MGM China (2282.HK) and Mississippi operations, sending its shares up 7 percent. For the quarter, MGM posted a net loss of 30 cents a share, compared with a net income of $6.22, a year earlier. The prior year's quarter included a $6.30 gain from its Macau unit consolidation. On an adjusted basis, the company posted a loss of 12 cents per share. Analysts estimated a loss of 16 cents, according to Thomson Reuters I/B/E/S. Net revenue in the second quarter rose 29 percent to $2.32 billion missing analyst estimates of $2.34 billion. Deutsche Bank analyst Carlo Santarelli said that MGM China earnings before interest taxes depreciation and amortization of $188.l6 million compared favorably to his $165 million estimate. Those results were encouraging particularly since growth is slowing in Macau, where MGM and other casino operators are spending aggressively. MGM is about to begin construction of a multibillion-dollar resort this year on Macau's Cotai strip. Revenue per available room -- a closely watched metric in the hospitality industry -- rose 5 percent to $124 million in the second quarter. MGM shares were up 5.9 percent at $9.94 in late morning on the New York Stock Exchange. (Additional reporting by Arpita Mukherjee in Bangalore; Editing by Akshay Lodaya and Leslie Gevirtz) Link this Share this Digg this Email Reprints

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