MGM Resorts International's (MGM) fourth-quarter loss narrowed
significantly after a $548 million charge related to tax-benefit
reduction a year earlier, as the company's casino revenue
declined.
Shares fell 2.2% premarket to $15.20. As of Friday's close, the
stock had risen 41% in the past year.
"We are encouraged in early 2011 by the level of business
activity we are seeing," said Chairman and Chief Executive Jim
Murren. "Our forward booking pace is currently ahead of last year
led by a stronger convention mix which we believe will position our
Company to have a better year than last."
The casino operator has seen revenue fall at most of its casinos
as Las Vegas has continued to suffer amid persistently high
unemployment. But the town's gaming industry has seen signs of
stabilization and loosening capital markets.
MGM reported a fourth-quarter loss of $139.2 million, or 29
cents a share, compared with a year-earlier loss of $433.9 million,
or 98 cents a share. The most recent quarter included a net 9 cents
of charges, while the year-earlier quarter included 77 cents of
charges, including the tax-benefit reduction. Net revenue edged
lower 0.1% to $1.62 billion.
Analysts polled by Thomson Reuters most recently forecast a
22-cent loss on $1.5 billion in revenue.
Casino revenue fell 3.1%. Revenue per available room, a key
measure of lodging industry performance, fell 2% on the Las Vegas
strip, as occupancy fell to 84% from 86% a year earlier and 93% the
prior quarter.
-By Matt Jarzemsky and Nathan Becker, Dow Jones Newswires;
212-416-2855; nathan.becker@dowjones.com