factors into MGM Resorts fourth quarter net loss -
17th February 2015
Resorts International operates just one casino in
Macau, but the troubles that have besieged the market
factored into the companys fourth quarter results.
casino company, which operates 10 resorts on or near
the Strip, said Tuesday it increased its net loss
in the quarter that ended Dec. 31 despite an otherwise
positive three months from its U.S.-based operations.
MGM Resorts reported a net loss of $342.3 million,
compared with a loss of $56.8 million in the same
quarter a year ago. The result translated into a loss
per share of 70 cents compared to a loss of 12 cents
per share last year. A large income tax provision
during the quarter also attributed to the net loss.
polled by Thomson Reuters expected MGM Resorts to
report a profit of 6 cents per share.
revenue for the company during the quarter was $2.38
billion, a decline of 5.1 percent, which included
a 5.5 percent increase from MGMs Strip resorts.
Stanley gaming analyst Thomas Allen noted cash flow
at the companys core properties
was up 17 percent year-over-year and cash flow from
the luxury resorts, such as Bellagio, increased 3
Resorts International reported its best fourth quarter
(cash flow) since the peak in 2007 and its best full
year in six years at its wholly owned domestic resorts,
MGM Resorts Chairman Jim Murren said in a statement.
the MGM Macau suffered a 22.4 percent revenue decline
during the quarter, reflective of Macaus financial
turmoil, which has seen the market suffer eight straight
months of declining revenue.
said a final dividend for 2014 of $120 million will
be awarded to MGM China shareholders. The company
will receive $61 million, based on its 51 percent
ownership stake. In addition, MGM China announced
a special dividend of $400 million. MGM Resorts will
receive $204 million.
all of 2014, MGM Resorts said its total revenue increased
3 percent to $10.1 billion, which included a 5 percent
increase from its Las Vegas and regional properties.
Macau revenue for the year declined 1 percent, but
CityCenter which is 50 percent owned by the
company reported net revenue from resort operations
of $1.2 billion, a 3 percent increase.
Resorts also gave a little more information about
the settlement last year of the Harmon construction
defect lawsuit with Perini Building Company. MGM said
its proceeds from the settlement agreement, combined
with certain prior Harmon-related insurance settlement
proceeds, will result in a gain of approximately $160
million to be recorded by CityCenter during the first
quarter of 2015.
is a developing story. Check back for updates.