Casino Gambling: MGM Mirage Q2 profit falls due to economy

MGM Mirage (NYSE: MGM), the world's second largest casino gambling operator said today the profits fell in the Q2 of 2008. According to the gambling giant, the deteriorating U.S. economy is to blame for the lower profits, as gamblers in Las Vegas significantly cut spending. According to the MGM report, second-quarter net income fell to $113.1 million, or 40 cents per share, from $360.2 million, or $1.22 per share, in the year-earlier period. Net income from continuing operations was 40 cents a share in the second quarter, down from 62 cents in the year-ago period.

MGM Mirage achieved 97% occupancy at its Las Vegas Strip resorts, while company-wide net revenue declined 2%. The casino gambling operator earned $0.40 per diluted share from continuing operations in the 2008 second quarter, compared to $0.62 in the prior year second quarter. The 2007 quarter included $63 million, or $0.14 per diluted share net of tax, of residential sales at The Signature at MGM Grand. The 2008 quarter includes $19 million, or $0.04 per diluted share net of tax, of insurance recovery income related to the Monte Carlo fire. Casino revenue decreased 4%, mainly as result of lower table games volume at the MGM's Las Vegas Strip resorts and a 10% decline in Las Vegas Strip slots revenue, offset by increased slots revenue at the larger MGM Grand Detroit and increases at Beau Rivage and Gold Strike Tunica.

Published on 08/05/2008