MGM Resorts Beats Earnings Expectations

MGM Resorts International said its third-quarter earnings surged thanks to a gain related to its recent deals related to the Borgata Hotel Casino & Spa in Atlantic City, N.J., and growth at its domestic operations.

Shares rose 4.5% to $27.60 in recent premarket trading as the results beat expectations.

MGM Resorts in August acquired partner Boyd Gaming Corp.'s 50% stake in the Borgata and then sold Borgata's real-estate assets to MGM Resort's spinoff MGM Growth Properties LLC. Under the deal, MGM Resorts will lease back and operate the resort.

In the three-month period ended Sept. 30, MGM China's revenue fell 6% to $500 million, as VIP table games revenue dropped 26% and main floor table games revenue grew 21%.

MGM's wholly owned domestic resorts, which include properties on the Las Vegas Strip and others throughout the U.S. reported revenue rose 16% to $1.9 billion. Revenue per available room, a key measure of performance for the lodging industry, improved by 11% at the company's Las Vegas Strip resorts, as occupancy rates and average daily room rates both strengthened.

Over all, MGM Resorts reported a profit of $535.6 million, or 93 cents a share, up from $66.4 million, or 12 cents a share, a year earlier. Revenue increased 10% to $2.52 billion.

Analysts polled by Thomson Reuters expected per-share profit of 9 cents and revenue of $2.4 billion.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

November 07, 2016 09:05 ET (14:05 GMT)

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