MGM Mirage has announced its financial results for the first quarter of 2009, revealing a 20 per cent decline in net revenue to $1.5bn.
Revenues were negatively impacted by increased convention cancellations - particularly in January and February and at the company’s Las Vegas Strip resorts - and a continued decline in discretionary spending due to the weakened economy.
Total casino revenue declined 16 per cent, with slot revenue down 12 per cent for the quarter. The company’s table games volume, excluding baccarat, was down 20 per cent, but the high end of the gaming segment was more resilient, with baccarat volume only down one per cent.
Operating income for the first quarter of the year stood at $355m, compared to $341m in the same period in 2008. Property EBITDA, which did not include the gain made on the sale of its Treasure Island property, was approximately $372m, down 35 per cent from $575m.
“While we experienced significant group cancellations early in the quarter and experienced a continuation of negative consumer spending trends from the fourth quarter, cancellations have tapered off and we see signs that our business levels seem to be stabilising,” said Jim Murren, chairman and chief executive officer of MGM Mirage. “Our resorts have seen sequential increases in occupancy levels through the first quarter and into April, and our forward booking pace is improving. This is allowing us the opportunity to better yield our room pricing. Additionally, world class events at our resorts continue to drive revenue and we have an exceptionally strong event calendar in the second and third quarters.”
