LAS VEGAS – MGM Mirage Inc. (MGG), one of the world's largest casino operators, said Thursday that its second-quarter profit climbed 35 percent, boosted by the recent acquisition of Mandalay Resort Group (search).
Quarterly earnings rose to $141.2 million, or 48 cents per share, from $104.7 million, or 36 cents per share, a year earlier. Earnings from continuing operations totaled $137.4 million, or 46 cents per share, excluding certain non-operating items.
Revenue minus promotional allowances jumped 60 percent to $1.72 billion from $1.07 billion, as sales at same-store locations — those open at least a year — rose 11 percent. The same-store measure excludes Mandalay operations.
The results beat analysts' expectations for adjusted profit of 44 cents per share on sales of $1.59 billion, according to Thomson Financial.
Revenue per available room, or RevPAR, — a key measure of industry health — jumped 15 percent at same-store Las Vegas strip (search) locations.
Looking ahead, MGM predicts third-quarter operating profit of 42 cents per share, in line with current analyst estimates. The company said it expects Las Vegas strip RevPAR to increase 8 percent, including Mandalay operations in both periods.
"We believe we are on target for at least $100 million of annualized merger-related benefits," said Jim Murren, the company's president, chief financial officer and treasurer.
MGM shares fell 41 cents to $43.49 on the New York Stock Exchange (search). Over the past 52 weeks, the stock has traded between $19.81 and $45.34.
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