MGM blames spending slowdown for revenue dip

Feb 25, 2013 7:11 PM

Officials at MGM Resorts International (MGM) blamed the slowdown in spending from customers during the quarter that ended on Dec. 31, 2012, for a slight dip in revenues.

After taking a major write-down in values of real estate in both Nevada and Atlantic City, the company said its loss for the period was $1.22 billion or $2.50 per share. In the comparable period, the company had a loss of $113.7 million or $.023 per share.

In explaining the write-downs, Jim Murren, chairman and CEO, said they were necessary to position the company for long-term growth.

“With all that we accomplished in 2012,” said Murren, “I think 2013 will be a better year.”

Murren also indicated “if the price is right,” the company would consider selling pieces of its CityCenter, such as the condo-hotel Vdara or the Mandarin Oriental.

CityCenter is a project that is half-owned by Dubai World.

Ray Poirier is the longtime executive editor at GamingToday.

Contact Ray at [email protected].

 GamingToday on Facebook      and         GamingToday on Twitter