The revenue of MGM Resorts International from its various casinos was 40 million dollars less in the third quarter reporting in comparison to the previous year. There were also additional losses incurred by the casino-entertainment firm with the re-opening of the 1,117 room hotel at Mandalay Bay, Las Vegas. The total loss in the quarter amounted to 20.3 million dollars, which would account for 4 cents/share.
This was actually an improvement if one compared it to the previous year losses of 22.3 million dollars, accounting for 5 cents/share. As far as non-recurring expenses were concerned, losses adjusted came out to 2 cents for each share, missing the average estimate made by analysts for a 6 cents/share profit. There was an increase in the revenue by 1 percent reaching $2.49 billion.
There has been a lot of focus by the firm on non-gambling income and it seems to be heading further into that direction. Pushing aside casinos and gambling, in Las Vegas, MGM is establishing an arena, building a site for hosting a festival and also trying to attract more tourist traffic by encouraging the opening of more shops and restaurants near the Strip’s sidewalk.
According to MGM Chief, Dan D’Arrigo, The Las Vegas tourist today changed and is on the lookout for many more experiences other than gambling. Relying on a growing convention market, MGM is looking for better and more powerful business opportunities all across Vegas in the coming year. It also plans to further enhance its existing properties near the Strip. Jim Murren, CEO, MGM believes that this move is crucial to its success.
According to Alex Bumazhny, analyst, Fitch Ratings, is of the opinion that the company’s results and its Las Vegas performance were somewhat disappointing. However, as far as the bigger picture is concerned, there seems to be a slow and stable recovery in the coming year. The key driving factor pushing MGM’s recovery seems to be the picking up of the convention business. So far, this is the story told to Wall Street by the company and the firm is now busy expanding its huge convention centre at Mandalay Bay.