MGM Resorts International (NYSE:MGM) more room for improvement in Q3
On Monday, MGM Resorts International (NYSE:MGM) reported its financial results for the quarter ended on 30 June 2013. The loss per share for the 2013 Q2 was $0.19 in comparison to the $0.30 loss/share of in the 2012 Q2. The comparability of the 2013 and 2012 consolidated-results was affected by some items that are mentioned below.
MGM’s Chairman and Chief Executive Officer Jim Murren said that the there has been a broad improvement in the company’s Strip EBITDA. There was a 15% rise which was driven by the 7% rise in casino revenues and 5% rise in the hotel revenues. He said that the company had performed very strongly in China which resulted in record results in the quarter. This was attributed to increased volumes in the VIP and mass market.
There was a 7% rise in consolidated net revenue in comparison to the $2.5M that it stood at in 2012. Consolidated casino revenue rose by 11%. The rooms revenue at wholly-owned domestic resorts rose 5% with a 2.5% rise in REVPARat the MGM’s Las Vegas Strip resorts. The adjusted-property EBITDA was $596M which was a 9% rise in comparison to the same quarter in 2012. MGM’s wholly-owned domestic-resorts earned Adjusted-Property EBITDA of $376M which was a 9 percent increase in comparison to the same quarter a year ago.
MGM China’s Adjusted EBITDA rose 10 percent to $205M. This included $15M of branding-fee expense in this quarter. CityCenter’s Adjusted EBITDA that is related to resort-operations was $67M which was a 6 percent drop in comparison to the previous year quarter. This was a result of a lower table-games hold % in this year.
Consolidated operating-income rose 32% to $232M in comparison to $175M in the previous year quarter. MGM’s term-loan B facility was re-priced in 2013 May. It now bears interest at LIBOR and 2.50 percent, with the LIBOR floor of 1.00 percent. This was a 75 basis-point drop in comparison to the previous rate.