LOS ANGELES, May 4 (Reuters) - MGM Mirage said on Monday it swung to a loss in the first quarter as gamblers stayed home and businesses canceled meetings in Las Vegas.
Net revenue fell 20 percent to $1.5 billion.
Including a 44-cent-per-share gain on the sale of the Treasure Island resort, the No. 2 casino operator posted net income of $105.2 million, or 38 cents per share, compared with net income of $118.3 million, or 40 cents per share, in the year-earlier period.
Wall Street analysts, on average, had expected an adjusted loss of 5 cents a share on revenue of $1.58 billion.
MGM and Dubai World, joint venture partners in the CityCenter project now under construction on the Las Vegas Strip, settled a legal dispute last week over the $8.5 billion development and said they had secured financing, clearing the way for it to open by the year-end.
MGM, burdened by some $13.5 billion in debt, also gained a waiver from lenders giving it until June 30 to bring debt levels into line with financial covenants.
The company's holdings include nine Las Vegas Strip casino- hotels, gambling resorts in Mississippi and Michigan, as well as joint ventures in New Jersey and China's Macau.
MGM shares rose nearly 20.5 percent to close at $9.47 on the New York Stock Exchange before the earnings announcement.
(Reporting by Deena Beasley; Editing by Andre Grenon) Keywords: MGMMIRAGE/ (deena.beasley@thomsonreuters.com +1-213-955-6746; Reuters Messaging: deena.beasley.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Net revenue fell 20 percent to $1.5 billion.
Including a 44-cent-per-share gain on the sale of the Treasure Island resort, the No. 2 casino operator posted net income of $105.2 million, or 38 cents per share, compared with net income of $118.3 million, or 40 cents per share, in the year-earlier period.
Wall Street analysts, on average, had expected an adjusted loss of 5 cents a share on revenue of $1.58 billion.
MGM and Dubai World, joint venture partners in the CityCenter project now under construction on the Las Vegas Strip, settled a legal dispute last week over the $8.5 billion development and said they had secured financing, clearing the way for it to open by the year-end.
MGM, burdened by some $13.5 billion in debt, also gained a waiver from lenders giving it until June 30 to bring debt levels into line with financial covenants.
The company's holdings include nine Las Vegas Strip casino- hotels, gambling resorts in Mississippi and Michigan, as well as joint ventures in New Jersey and China's Macau.
MGM shares rose nearly 20.5 percent to close at $9.47 on the New York Stock Exchange before the earnings announcement.
(Reporting by Deena Beasley; Editing by Andre Grenon) Keywords: MGMMIRAGE/ (deena.beasley@thomsonreuters.com +1-213-955-6746; Reuters Messaging: deena.beasley.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.