Las Vegas Strip and Macau make MGM Resorts profitable
Things are bright for MGM Resorts International: After some tricky profit-and-loss calculations in recent years, the casino group turned a profit in the first quarter of 2013. You can praise the success of its City Center project on the Las Vegas Strip, which posted record profits, and its Macau cash cow project, which similarly outperformed all first quarters from January to March this year.
MGM reported first-quarter net income of $22.6 million on revenue of $2.54 billion, compared with a first-quarter loss of $203.3 million on revenue of $2.47 billion in the same period last year. An impressive transformation indeed.
Jim Murren, chairman and CEO of MGM Resorts, expressed understandable excitement about the turnaround in earnings (and no doubt counting a raise next year, too); Murren A statement on the achievement said: “Our first-quarter 2013 results were the best reported since the start of the economic downturn [read “financial avalanche and free fall”] five years ago, in which Las Vegas Our results were driven by improvements in Avenue Resorts' performance. ”
Urban centers come into play
CityCenter proved to be good value for money for MGM. Revenue for the quarter was $93 million, triple the $32 million reported in the same period last year. The center's many upscale amenities have contributed to the center's growth, including the world-class casino Aria, Vdara (its non-gaming but chic hotel/spa entrance), a luxury retail and dining area called Crystals, and its Two new non-gambling facilities La de dah hotel list, the super stylish Mandarin Oriental. The group's net sales increased by 32% compared with 2012, reaching $315.1 million. Occupancy rates improved in both Aria and Vdara, suggesting the economy continues to slowly emerge from the black hole; Aria rose more than 2 percentage points to 89%, and Vdara rose more than 4 percentage points to 85.7%.
In an award-winning interview after the report was released, Mullen noted that "Las Vegas is recovering well," noting the new MGM Grand nightclub Hakkasan and several major special events, including the Floyd incident. The event will be one of the improving numbers for Las Vegas in the future. Vegas could host a Mayweather-Ruben Guerrero boxing match and a Rolling Stones concert at the MGM Grand. Beyoncé and Justin Bieber also have concert dates planned. We have Beyoncé, but is Bieber a little too young for the high rollers? I think that's why our first quarter results were not as good as MGM Resorts; we're not smart enough to understand these things.
Macau continues to be amazing
MGM China has been a shaky cash cow for MGM, but it remains in Macau, already the world's most profitable gambling destination. It had net sales of $748 million, up 6 percent from the first quarter of 2012, with big wins on both table games and slot machines, and profits up 26 percent and 19 percent, respectively.
Green is a good thing
Not to mention the $100 million New York City-style park designed as an interlude between Monte Carlo and New York, and the 20,000-seat arena MGM is building, expected to be completed in 2016, for Massachusetts, New resorts planned in Maryland, Toronto and Macau. Chi-Chi-Cotai Strip, let's just say MGM's green future is looking pretty green.
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Source: www.casino.org
