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MGM Resorts posts Q3 losses, Melco Crown posts first profits in 10 quarters

TAGs: Las Vegas, Macau, Melco Crown Entertainment, MGM Resorts

mgm-resorts-melco-crown-q3MGM Resorts International has reported a net loss of $318m in Q3. While that sounds grim, it’s less than half the $750m loss it posted in Q3 2009. Among the major American casino players, MGM is the most heavily invested in Las Vegas, and the Strip’s struggle to regain its profitable footing is weighing heavily on MGM’s balance sheet.

Net revenue, excluding reimbursed costs, was down 3%. Gambling revenue was down 9%, slots off 3% and table games (excluding baccarat) were 7% lower. Room revenue also dipped as occupancy rates slipped from 95% to 93%. MGM Chairman/CEO Jim Murren did his best to echo Steve Wynn’s prediction that Las Vegas had hit bottom, saying “We continue to see the Las Vegas market stabilizing … We can now look forward and not behind us.” If Murren’s looking anywhere for a silver lining, it’s eastward to Macau. MGM Macau earned a record $61m this quarter, up from $50m.

Also singing Macau’s praises is Melco Crown, who announced their first quarterly profit in two and a half years. Melco, which own two properties in Macau, made $15.8m in Q3, compared with a $39.5m loss in 2009. The previously underperforming City of Dreams casino took in only $288m in Q3 2009, but boosted that figure to $504m this quarter. Melco’s Lawrence Ho (son of Stanley) was feeling suitably chuffed by the numbers, proclaiming that “Macau is firing on all cylinders and we are fully participating in this growth. In fact, we are taking [market] share.” Careful, Lawrence… You don’t want Sheldon Adelson pissed off at you…

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