WASHINGTON (dpa-AFX) - Casino chain MGM Resorts International (MGM), Monday reported a profit for the second quarter over a net loss last year, due mainly to a hefty gain from acquiring controlling interest in MGM China. Quarterly results were also benefited by strong contributions from casino and room revenues. Both earnings as well as revenues came in well ahead of Street expectations.
Net income attributable to MGM Resorts was $3.44 billion or $6.22 per share for the second quarter, compared to a net loss of $0.88 billion or $2.00 per share in the prior year quarter. On average, 22 analysts polled by Thomson Reuters expected the company to report a net loss of $0.13 per share for the second quarter. Analysts' estimates typically exclude special items.
Results for the quarter include a hefty gain of $3.5 billion or $6.30 per share, as a result of acquiring a controlling interest in MGM China Holdings Ltd. The prior year results include a non-cash charge of about $1.12 billion or $1.64 per share, net of tax, relating to an impairment of the company's investment in the CityCenter joint venture.
Consolidated operating income for the quarter was $3.70 billion, compared to an operating loss of $1.00 billion in the year-ago quarter.
The Las Vegas, Nevada-based company's second quarter revenues increased 17 percent to $1.81 billion from $1.55 billion in the same quarter last year. Nineteen analysts had a consensus revenue estimate of $1.59 billion for the second quarter.
Casino revenues soared 33 percent to $797.5 million, room revenues rose 10 percent to $396.8 million, food and beverage revenue improved 3 percent to $372.0 million, entertainment revenues were up by 5 percent to $130.1 million, and Retail revenues grew 6 percent to $54.3 million over a year earlier.
Net revenues from MGM China more than doubled to $668 million from $307 million in the second quarter of 2010, primarily due to an increase in VIP table games turnover of 110 percent and a 21 percent increase in main floor table games drop.
During the quarter, MGM China Holdings Ltd., the casino joint venture between MGM Resorts and Macau-based Pansy Ho Chiu-King, completed its initial public offering of shares on the Stock Exchange of Hong Kong Limited on June 3.
Pansy Ho, daughter of Macau's casino magnate Stanley Ho, has 29 percent stake in MGM China, while MGM Resorts holds 51 percent stake.
MGM Resorts closed Monday's regular trading at $11.54, down $1.12 or 8.85%, on a volume of 42.06 million shares. In after-hours, the share further lost 14 cents or 1.21%.
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