Casino revenue at US-based operator MGM Resorts International fell six per cent in the second quarter of the 2010, compared with the previous year.
Slots revenue was down approximately three per cent, while the company’s table games volume, excluding baccarat, decreased seven per cent. Baccarat volume was up 10 per cent on the same period last year.
Overall, MGM’s net revenue improved sequentially to $1.54bn from $1.46bn in the first quarter of 2010.
Adjusted Property EBITDA from its wholly-owned operations stood at $305m, up from $267m in the first quarter. CityCentre earned adjusted EBITDA of $9m in the second quarter having been negatively affected by a low table games hold percentage at Aria.
The company’s operating loss for the second quarter of 2010 was $1bn - which included the $1.12bn impairment of the company’s investment in CityCenter and its $29m share of the CityCenter residential impairment charge - compared to operating income of $131m in the 2009 quarter. Excluding the impairment charges related to CityCenter, the company estimated that it would have earned operating income of $102m in the second quarter.
"The Las Vegas operating environment remains difficult, but as we expected, we are seeing a gradual recovery," said Jim Murren, MGM Resorts International’s chairman and chief executive officer. "CityCenter is seeing improved business activity. Aria is gaining brand awareness, which led to a 17 percentage point sequential occupancy increase in the quarter and high non-casino revenues."
