\nKimberly Pierceall, Associated Press<\/p>\n
\tLAS VEGAS (AP) \u2013 MGM Resorts International\u2019s fourth-quarter loss widened, hurt by a hefty provision for income taxes related to its liabilities in Macau, China, the world\u2019s largest gambling market.<\/p>\n
\tNonetheless, MGM CEO Jim Murren told Wall Street analysts Tuesday that the company\u2019s earnings before taxes and non-recurring costs were the best since 2007. A considerable gap remains between the latest results and those in 2007 when, as Murren joked, he didn\u2019t have gray hair.<\/p>\n
\t\u201cIt was pretty heady back then,\u201d he said of abundant spending in a pre-recession era, adding that he wasn\u2019t sure if it would ever rise to that level again.<\/p>\n
\tHe recalled a $300,000 check for 12 people dining at the Prime Steakhouse inside the Bellagio, mostly spent on wine. \u201cWe haven\u2019t seen that for a while,\u201d he said.<\/p>\n
\tThe Las Vegas-based company owns and operates 10 casino-hotels on the Las Vegas Strip, the MGM Grand Detroit, the Beau Rivage and Gold Strike Tunica in Mississippi and MGM Macau in China.<\/p>\n
\tThe company said that MGM China\u2019s board declared a special dividend of $400 million. It will be paid on March 19 to shareholders of record on March 10.<\/p>\n
\tThe company lost $342.3 million, or 70 cents per share, for the three months ended Dec. 31 because of the non-cash charge related to the income tax for the company\u2019s foreign assets. That compares with a loss of $56.8 million, or 12 cents per share, a year earlier.<\/p>\n
\tThe current quarter\u2019s provision for income taxes totaled $328.1 million. A year ago it was $3.9 million.<\/p>\n
\tEarnings, adjusted for pretax expenses and non-recurring costs, amounted to a penny per share, missing Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 6 cents per share.<\/p>\n
\tThe casino and resort operator posted revenue of $2.39 billion in the period, minus promotional allowances. Analysts expected higher revenue of $2.43 billion, according to Zacks.<\/p>\n
\tWhen other casino companies \u2013 Wynn Resorts and Las Vegas Sands \u2013 honed in on the Asian gambling hub of Macau as the recession worsened at home, MGM Resorts focused on Las Vegas and United States developments and eventually opened a single overseas property, MGM Macau.<\/p>\n
\tFortunes in Macau have shifted, though, since a government corruption crackdown scared off high-spending VIP gamblers.<\/p>\n
\tRevenue and earnings at MGM\u2019s property in Macau dropped 22 percent in the last quarter. It\u2019s still a lucrative market, but just not as lucrative as it once was.<\/p>\n
\t\u201cThere were many years where being a Las Vegas centric company was unattractive in investors\u2019 minds,\u201d Murren said after the call with investors.<\/p>\n
\tLas Vegas has been showing signs of recovery, though, and MGM Resorts has been investing heavily in new Strip-front attractions, a 20,000-seat arena for sports and entertainment and a festival site.<\/p>\n
\tAddressing long-standing rumors that The Mirage resort, which performed poorly in the last quarter and full year, could be up for sale, Murren said the company looks at anything that might generate value for shareholders.<\/p>\n
\t\u201cWe\u2019re not blindly in love with any of our properties,\u201d he said.<\/p>\n
\tFor now, he said the company is changing its restaurants and adding a bar because the casino hotel with the iconic volcano at its entrance doesn\u2019t have enough to keep visitors there throughout the night, he said.<\/p>\n
\tElsewhere, the company is moving forward with properties in Baltimore and another in Macau. They are expected to open in the fall of 2016.<\/p>\n
\tFor the year, MGM Resorts posted a loss of 31 cents per share on revenue of $10.08 billion.<\/p>\n
\tIts shares rose 41 cents, or 1.9 percent, to close Tuesday at $21.87.<\/p>\n
No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"
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