LAS VEGAS-MGM Mirage had a positive outlook to report in thecompany’s first-quarter conference call, saying that it expectsimprovement in the Las Vegas market for the rest of this year andinto next year. Said Jim Murren, MGM Mirage chairman and CEO, "Wesee signs of improvement in the Las Vegas market and expect thoseto accelerate in the second half of the year and into 2011. Ourforward bookings continue to improve as our convention bookingscontinue to gain traction."

|

Murren said that MGM Mirage is well positioned to increase itsoperating margins and cash flows as the economy recovers. He citedfirst-quarter results for the company’s new CityCenter project, a$9 billion development that includes the 4,000-room Aria Resort& Casino.

|

“We expect Las Vegas visitation to be strong for the balance of2010, and Aria's conference calendar is strengthening,” Murrensaid. He said that MGM expects Aria's occupancy to improve over thebalance of the year and is unveiling a new marketing effort for itin the coming weeks with new TV and direct marketing elements. “Nowthat CityCenter is complete, we are able to use its architecturallyunique and highly visual assets in a coordinated global advertisingpush," the MGM Mirage chief said.

|

Aria, the centerpiece casino resort at CityCenter, reported netrevenue of $160 million and an operating loss of $66 million, whichincluded depreciation expense of $54 million. Hotel occupancypercentage was 63% with an average daily rate of $194.

|

CityCenter reported net revenues of $260 million and anoperating loss of $255 million for the quarter, which included anapproximately $171 million non-cash impairment charge related toits residential inventory, depreciation expense of $69 million, andpreopening expenses of $6 million. CityCenter results benefitedfrom revenues of $24 million related to forfeited residentialdeposits.

|

Murren said that CityCenter's first quarter results wereparticularly affected by the weakness in the Las Vegas conventionmarket. The loss at CityCenter was partially offset by thecompany's share of operating income at the MGM Grand Macau, whichearned operating income of $49 million in the first quarter.

|

Overall, MGM Mirage recorded a first quarter diluted loss pershare of $0.22 compared to earnings of $0.38 per share in theprevious year first quarter. The current year results include again on extinguishment of debt of $142 million, while the previousyear’s results included a gain of approximately $190 million (or$0.44 per share, net of tax) related to the sale of Treasure Islandhotel and casino.

|

MGM Mirage owns and operates 15 properties in Nevada,Mississippi and Michigan, and has 50% investments in four otherproperties in Nevada, Illinois and Macau. Among its major holdingsare the Bellagio, MGM Grand, Mandalay Bay, The Mirage, Monte Carlo,New York-New York, Luxor, Excalibur, and Circus Circus.

|

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.