MGM Mirage casinos are doing good, but below expectations

The 3Q net income up 18% at MGM Mirage, but profit lower than expected from the casino giant.

MGM Mirage casinos are doing good, but below expectations The second largest casino operator in the world, MGM Mirage (NYSE:MGM), reported 18% increase in net income to $183.9 million in their third quarter report yesterday, but the numbers fell short to meet the expectations. After gain from one-time items, the posted profit came to 42 cents per share, below the 50 cents many analysts forecasted earlier. Among the excluded items are $135 million in insurance recoveries from Hurricane Katrina.

Thanks to the new Beau Rivage Casino in Mississippi, net revenue was up 6% to $1.9 billion, but the casino was open for only 33 days during the last year's 3Q, compared to a full quarter this time around. The gaming revenue of MGM Mirage is up 3%, but down 3% with Beau Rivage Casino excluded. The operating earnings at MGM properties on the Las Vegas Strip were down 6% due to slumping sales of condominiums at the Signature at MGM Grand and EBITDA fell 3.5% to $469.6 million.

Published on 10/31/2007