MGM AT A Loss With Massive Rooms On The Strip
MGM Mirage (MGM: 11.10 0.00%) posted a narrower loss for the fourth quarter as they launched the opening of the City Center in an area already struggling to fill hotel rooms.
MGM reported that occupancy rates at their casino resorts on the Vegas strip rose 86% however the daily rate dropped by 18% due to heavy discounting, as well as a 8.9% decrease in Food and Beverage sales.
“We have profoundly improved our cost structure and are actively building revenue to maximize operating leverage as the economy shifts into recovery mode,” said Chairman and Chief Executive Jim Murren.
Expenses for the quarter were down to $1.96 billion from $2.68 billion a year earlier.
While analysts estimated that the gaming company would report a loss of $0.13 per share, MGM posted a loss of $0.98 a share or $433.9 million.
After the $1.2 billion in write downs including an impairment charge on the value of the companies undeveloped Atlantic City property the loss was $0.21 a share.
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