MGM Resorts International Lessens Fourth Quarter Loss With Increased Casino RevenueMGM Partners With Ameristar For Marketing Alliance |
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MGM Resorts International (MGM) narrowed its fourth-quarter losses on Wednesday after saying that casino revenues had more than doubled over the previous year.
The Paradise, Nevada company, which owns and operates at least part of 19 different properties, reported a net loss of $113.69 million in 2011, which was down from 2010’s net loss of $139.2 million.
CEO Jim Murren credited the improvement to a number of factors, including an increase in per property revenue, which saw domestic revenue per room grow 10 percent. Overall, casino revenue grew from $617 million to $1.37 billion during the 12-month period.
Strip occupancy also improved from 84 to 87 percent, as did daily rates, which grew from an average of $118 to $129 per room. The growth points to a sharp rebound in consumer spending at both domestic and international properties.
Despite the improvement, MGM stock slipped 23 cents per share after missing previous analyst projections.
MGM recently partnered with Ameristar Casinos (ASCA) to form a cross-marketing deal that will allow patrons of both casino giants to use their players club points and rewards at either company’s properties. The two have almost no overlap in regional assets, allowing them to form an alliance with no competitive conflict.
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