MGM MIRAGE reported their financials today.
The company's press release is all roses:
Not everyone is buying that though:
MGM MIRAGE Misses : TheStreet.com
Technorati Tags: bellagio, gaming industry, las vegas, mgm mirage, vegas
Categories: Business of Gaming, Las Vegas Strip, MGM Resorts International
The market was apparently reacting to their guidance for Q3 -- they're predicting earnings a couple cents a share lower than previous analyst estimates. In the conference call management indicated performance at their lower end properties is down this summer.
I hadn't seen breakdown of results for individual properties before, maybe because I don't usually listen to conference calls. Bellagio had cash flow (EBITDA) of over $130M last quarter. That's about the same as Wynn and the Venetian combined.
I've been away and frustrated by poor internet access, so I'm just catching up today.
As Mike P posted, MGM's lower-end properties were weak, but the high-end properties did great. $131 Million EBITDA at Bellagio set a record, and its $248 REVPAR is very strong. The lagging lower-end may be the catalyst for MGM to rebuild and reposition Excalibur as speculated recently.
Are the economy, gas prices, housing market, etc causing concern? MGM's Promotional Allowances (Comps) were up 17% in the first six months of '06.
Great. If economic conditions are causing concern, yet it's the high-end properties that are doing better than ever, then it's a sure thing we'll see those mega-condo-retail-botique projects taking over the Strip and bye-bye bargain Vegas. Just have to work on earning those comps, I guess.... ; )
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