Casino operator MGM Resorts International (MGM: Quote) on Wednesday reported a loss for the fourth quarter that widened from last year, hurt by impairment charges and refinancing costs. In addition, revenues edged down from the year-ago period.
At MGM China, revenues for the fourth quarter rose 2 percent from last year. Growth was led by a 13 percent rise in volume for main floor table game, while slots were up 37 percent. VIP table-games turnover increased 6 percent.
The casino operator has won approval to build a $2.5 billion five-star luxury resort and casino in Macau, the world's biggest casino market.
MGM Resort's Las Vegas and Macau operations have seen some recovery after curtailed spending during the 2008 financial crisis.
Casino revenues related to wholly-owned domestic resorts in the U.S. edged up 1 percent. The overall table games hold percentage in quarter was 21.9 percent, compared to 22.8 percent for the prior- year quarter. Slots revenue increased 2 percent compared to last year. Rooms revenue increased 2 percent, with Las Vegas Strip RevPar up 1 percent.
MGM Resorts' fourth-quarter net loss was $1.22 billion or $2.50 per share, wider than loss of $113.69 million or $0.23 per share in the prior-year period.
On average, 23 analysts polled by Thomson Reuters expected the company to report loss per share of $0.22 for the quarter. Analysts' estimates typically exclude one-time items.
The latest quarter's results include among others, an impairment charge of $65 million related to the company's investment in Borgata, a $366 million impairment charge on land holdings on the Las Vegas Strip and a $167 million impairment charge on land holdings in the Atlantic City. The company also recorded a loss of $505 million related to its December refinancing transactions.
Net revenue for the quarter edged down to $2.29 billion from $2.30 billion in the year-ago period, while analysts had a consensus estimate of $2.31 billion.
For fiscal 2012, MGM Resorts' net loss was $1.77 billion or $3.62 per share, compared to net income of $3.11 billion or $5.62 per share in the prior year. However, revenue for the year rose 17 percent to $9.16 billion from $7.85 billion last year.
Analysts expected the company to report loss of $0.65 per share for the year on revenues of $9.18 billion.
MGM China's board announced a special dividend of $500 million, payable to shareholders of record as of March 11 and to be distributed on or about March 18. MGM Resorts will receive $255 million, representing its 51 percent share of the dividend.
In Wednesday's regular session, MGM is trading at $12.97, up $0.23 or 1.81 percent on a volume of 1.75 million shares.
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by RTT Staff Writer
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