MGM Resorts Swings To Q2 Profit, Results Top Estimates

(RTTNews) - Casino operator MGM Resorts International (MGM) reported Tuesday a profit for the second quarter compared to a loss last year, reflecting lower expenses and casino revenue growth. The results were also boosted by a income tax benefit. Both earnings per share and quarterly revenues topped analysts' expectations.

"I am pleased to report another solid quarter of growth at MGM Resorts. Our domestic business was very strong with 12% EBITDA growth in Las Vegas driven by strong performance in both our room and casino segments. CityCenter resort operations continue to improve while in Macau we grew cash flow and margins due to a higher contribution of revenues from our main floor business," Chairman and CEO Jim Murren said in a statement.

Las Vegas, Nevada-based MGM Resorts reported net income of $105.54 million or $0.21 per share for the second quarter, compared to a net loss of $92.96 million or $0.19 per share in the prior-year quarter.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net revenue for the quarter grew 4 percent to $2.58 billion from $2.48 billion in the same quarter last year, and topped eighteen Wall Street analysts' consensus estimate of $2.57 billion by a whisker.

Consolidated casino revenue remained flat with last year at $916.81 million, with casino revenue related to wholly owned domestic resorts increasing 6 percent. Food and beverage revenue increased 5 percent to $412.72 million, and rooms revenue grew to $463 million from $438 million last year.

MGM China revenues edged down 1 percent to $828 million from last year's $835 million, with VIP table games revenue decreasing 18 percent. However, main floor table games revenue increased 41 percent.

MGM China's board announced a dividend of $136 million, payable on or about September 1 to shareholders of record as of August 25, 2014. MGM Resorts will receive $69 million, representing its 51 percent share of the dividend.

CityCenter Holdings, LLC's net revenue from resort operations increased 9 percent to $304 million from the prior-year quarter, with Aria revenues growing to $245 million from $226 million a year ago.

Total expenses for the quarter declined to $2.25 billion from $2.26 billion last year, as property transactions expenses plunged to $33 million from $88 million a year ago.

The company recorded a benefit for income taxes of $52.54 million for the quarter, compared to a income tax provision of $3.57 million last year.

MGM closed Monday's regular trading session at $26.45, up $0.29 on a volume of 7.01 million shares. In the past 52-week period, the stock has been trading in a range of $16.75 to $28.75.