MGM Resorts 3Q loss widens

Associated Press

LAS VEGAS (AP) — MGM Resorts International Inc. said Wednesday that its third-quarter loss swelled on lower traffic and hotel room rates at its properties on the Las Vegas strip.

The loss was larger than analysts expected, and its shares fell 4 percent in midday trading.

The company posted a loss of $181.2 million, or 37 cents per share, for the July-September quarter compared with a year-earlier loss of $123.8 million, or 25 cents per share.

Revenue rose 1 percent to $2.25 billion. MGM said revenue was driven by a 7 percent increase in sales from its resort in the Asian gambling mecca of Macau, the only place in China where gambling is legal.

Analysts expected a loss of 17 cents per share on revenue of $2.28 billion.

"Our third quarter operating results are reflective of a challenging consumer environment," the company said in a statement.

Revenue from U.S. resorts fell 2 percent to $1.5 billion. Per-room revenue fell 3 percent, while the metric was down 2 percent at resorts on the Las Vegas strip.

Overall, casino revenue increased, but sales in all other areas — including hotel rooms, food and entertainment, fell.

The company said fourth-quarter trends are improving at its U.S. resorts and bookings for conventions are showing strength through 2014.

Shares lost 41 cents, or 4 percent, to $10.17 in midday trading. The stock fell as low as $8.83 in in August. It traded as high as $14.94 in mid-February.

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