MGM Resorts International (NYSE:MGM) posted a narrower-than-expected second-quarter loss on Tuesday as room revenue improved and expenses tightened, sending its shares up nearly 9%.
The Las Vegas-based casino and resort operator reported a loss of $145.5 million, or 30 cents a share, compared with a year-earlier profit of $3.4 billion, or $7.04 a share. The year-earlier period included a gain of $6.30 a share related to the consolidation of MGM China.
Excluding one-time items, MGM lost 12 cents a share, better than the 16-cent loss predicted by analysts in a Thomson Reuters poll.
Revenue for the three months ended June 30 was $2.32 billion, up from $1.8 billion a year ago, narrowly below the Street’s view of $2.35 billion.
MGM’s wholly-owned domestic resorts booked revenue of $1.5 billion, reflecting a 1% decline in casino revenue offset by a 5% improvement in revenue per available room – a closely watched growth metric in the hospitality industry - at its Las Vegas Strip resorts.
"We continue to focus on maximizing profitability by managing costs, improving our customer relationships, as well as exploring growth opportunities in key strategic regions across the U.S. and internationally,” MGM Resorts CEO Jim Murren said in a statement.
In MGM China, meanwhile, which started trading publicly on the Hong Kong Stock Exchange in June 2011, said sales grew 6% to $709 million, led by an increase in volume for main floor table games and slots.