MGM Mirage posts smaller fourth-quarter loss
MGM Mirage posted a smaller fourth-quarter loss but failed to live up to many analysts’ predictions.
MGM Mirage Chairman and CEO Jim Murren said the company has “profoundly improved our cost structure” and is “actively building revenue to maximize operating leverage as the economy shifts into recovery mode.”
MGM Mirage posted a loss of $433.9 million, or 98 cents a share, compared with a year-earlier loss of $1.15 billion, or $4.15 a share, which included a $1.2 billion write-down. Excluding a one-time charge to write down the value of undeveloped Atlantic City land and other items, it lost 21 cents per share. Revenue declined 11 percent to $1.45 billion.
Analysts surveyed by Thomson Reuters had expected a loss of 13 cents per share, according to an Associated Press report.
While the casino operator has seen flat occupancy, there has been heavy discounting on room rates, particularly in Las Vegas.
Occupancy rates in Las Vegas rose to 86 percent from 85 percent in the fourth quarter, but the average daily rate declined 18 percent. MGM Mirage added thousands of rooms to the market when it opened its $8.5 million CityCenter development, including the 4,000-plus-room Aria casino resort, in December.