MGM Resorts International (NYSE: MGM) today reported its third quarter 2012 results. Net loss per share attributable to the Company was $0.37 compared to a loss of $0.25 in the prior year third quarter. Comparability of the current and prior year quarterly consolidated results was affected by certain items discussed further below. Key results for the third quarter of 2012 include the following:
— Consolidated net revenue increased 1% to $2.3 billion, driven by a 7%
increase in MGM China’s net revenue;
— Consolidated casino revenue increased 4%, representing a 7% increase at
MGM China and a 2% increase at the Company’s wholly owned domestic
resorts;
— Rooms revenue decreased 3%, primarily due to a 2% decrease in
REVPAR((1)) at the Company’s Las Vegas Strip resorts;
— The Company’s wholly owned domestic resorts earned Adjusted Property
EBITDA((2)) of $325 million, a 7% decrease compared to the prior year
quarter;
— MGM China reported record third quarter Adjusted EBITDA of $152 million
which included $5 million of branding fee expense. Excluding branding
fees, Adjusted EBITDA increased 5% compared to the prior year quarter;
and
— CityCenter reported Adjusted EBITDA from resort operations of $59
million, an 18% increase from the prior year quarter.
“Our third quarter operating results are reflective of a challenging consumer environment, but we had some bright spots with strong results from MGM Grand Las Vegas and The Mirage and record third quarters from MGM China and CityCenter,” said Jim Murren, Chairman and CEO of MGM Resorts International.. “We have achieved a great milestone with MGM China by accepting the formal land concession agreement and look forward to continuing to make progress towards a second resort and casino in Macau. Meanwhile, early fourth quarter trends are improving at our domestic resorts and forward convention booking pace is showing growth in 2013 and is further accelerating into 2014.”
Certain Items Affecting Third Quarter Results
The following table lists items that affect the comparability of the current and prior year quarterly results (approximate diluted per share impact on net income (loss) attributable to MGM Resorts International, net of tax; negative amounts represent charges to income):