MGM Resorts 4Q loss widens; customer spending dips

Published on NewsOK Modified: February 20, 2013 at 1:29 pm •  Published: February 20, 2013
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"That gives us plenty of time to deleverage the balance sheet, get our house in order, and take on those projects when we need too," he said.

The casino operator lost $1.22 billion, or $2.50 per share, for the three months ended Dec. 31. That compares with a loss of $113.7 million, or 23 cents per share, for the final quarter of 2011. Stripping out impairment charges and other one-time items, MGM Resorts lost 23 cents per share in the latest period — slightly more than the 22 cents that analysts had forecast, according to FactSet.

Revenue dipped slightly to $2.29 billion from $2.3 billion, also missing Wall Street's average estimate of $2.32 billion. While casino and lodging revenue improved during the quarter, customers visiting MGM Resorts' properties spent slightly less on food and drinks. Spending dropped 10 percent on entertainment and 4 percent on retail shopping.

Meanwhile, MGM spent 2 percent more on promotions during the period, and other corporate spending also increased.

For the year, MGM Resorts lost $1.77 billion, or $3.62 per share. It reported a profit of $3.11 billion, or $5.62 per share, in the prior year. Annual revenue climbed 17 percent to $9.16 billion from $7.85 billion.

The company's stock rose about 2 percent in morning trading after the report, but was up just 2 cents at $12.76 by afternoon.



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