MGM MIRAGE releases third quarter financial report

Oct 29, 2008 9:03 PM

by GT Staff |

MGM MIRAGE (NYSE: MGM) Wednesday released its third quarter 2008 financial report.

The company's net revenue decreased 6-percent to $1.8 billion. Casino revenue decreased 8-percent, food and beverage revenue down 3-percent and entertainment revenue 4-percent.

But it wasn't all bad news. The Bellagio reported a 3-percent increase in net revenue, with the average room rate having increased 1-percent to $247 and occupancy was 96-percent, leading to an all-time high in terms of third quarter hotel revenues.

"We continue to manage our resorts to achieve maximum performance across all our businesses, and achieved occupancy of 95% at our Las Vegas Strip resorts for the third quarter," said Terry Lanni, Chairman and CEO of MGM MIRAGE in a press release. "Our performance was impacted by the global economic environment, a trend that is not unique to our industry, but we continue to generate strong cash flows. Bellagio, our flagship resort, continues to outperform the market as evidenced by its third quarter performance."

But for the company, rooms revenue decreased 10-percent. Average room rates were down 9-percent at their Las Vegas Strip resorts, with Las Vegas Strip occupancy at 95-percent compared to 97-percent in the prior year quarter.

Casino revenue decreased 8-percent, as table games volume decreased of 13-percent at their Las Vegas Strip resorts. The table games hold percentage was within their normal 18-percent to 22-percent range in the current quarter and slightly higher than in the 2007 quarter. Slots revenue decreased 6-percent in the quarter, with their Las Vegas Strip resorts reporting a 13-percent decrease, partially offset by double digit increases at Gold Strike Tunica and MGM Grand Detroit.

Their Cirque du Soleil production shows continue to attract large audiences, with revenues consistent with the prior year quarter. In addition, Believe starring Criss Angel is currently playing preview performances at Luxor and will perform its grand-opening show on Oct. 31.

Related Articles:
MGM MIRAGE mulls money-saving moves
No bonuses at MGM MIRAGE Inc
MGM MIRAGE layoff rumor denied
MGM Grand Detroit lays off workers