MGM Resorts International's (MGM) first-quarter loss narrowed as
revenue increased amid signs of recovery in Las Vegas.
Shares rose 6.7% to $13.76 in recent premarket trading.
The Las Vegas-focused casino operator has seen its bottom line
improve in recent quarters as charges have weighed less heavily.
But it has struggled to increase revenue, underscoring a slow
recovery in its key market. To be sure, the Las Vegas gambling
industry has seen signs of stabilization and benefited from
loosening capital markets.
MGM reported a loss of $89.9 million, or 18 cents a share,
compared with a year-earlier loss of $96.7 million, or 22 cents a
share. The latest result included a 2-cent debt-retirement charge
while the year-earlier result included 9 cents in net gains.
Revenue rose 3.3% to $1.5 billion.
Analysts polled by Thomson Reuters most recently forecast a
19-cent loss on $1.5 billion in revenue.
Casino revenue, the largest top-line contributor, slid 4.7%. But
room revenue rose 13% alongside higher revenue from food and
beverage, entertainment and retail. Revenue per available room, a
key measure of lodging industry performance, jumped 16% on the Las
Vegas strip, as occupancy rose to 87% from 85% and the average
daily rate climbed 13%.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com