MGM loss up in first quarter, despite jump in revenue

The wider loss was driven by unlucky play by certain Las Vegas casinos and nonoperational accounting entries, as operating income rose from us$ 169.7 million to us$ 192.6 million.

Ads by GoogleNet revenue of us$ 2.29 billion was up 51 percent, thanks largely to the addition of MGM China to the parent company's results. Excluding MGM China, net revenue was up 5 percent.

With tourism continuing to rebound on the Las Vegas Strip, MGM Resorts said it benefited by boosting hotel room occupancy rates in Las Vegas from 87 percent to 90 percent and by lifting revenue per available room per day from us$ 112 to us$ 117.

At the company's half-owned CityCenter resort complex on the Strip, the Aria generated revenue per available room of us$ 177, up 3 percent. But its casino played unlucky, with its table games holding, or winning, just 16 percent of the amount wagered vs. 27.4 percent in the 2011 first quarter. That slashed net revenue for the property by us$ 33 million.

Casino winning percentages running lower than expected at the company's wholly-owned resorts and at Aria reduced the company's adjusted property EBITDA - earnings before interest, taxes, depreciation and amortization -- by some us$ 32 million, the company said.

Despite this, business trends are looking up, MGM Resorts officials said. "We continue to see growth across our domestic business fundamentals with revenues, casino volumes, revenue per available room and adjusted EBITDA all increasing year over year, while MGM China continues to report strong results," CEO Jim Murren said in a statement.

MGM China owns the MGM Macau resort sporting 1,000 slot machines and 430 table games in the booming gambling territory of Macau. It contributed us$ 165 million in adjusted property EBITDA. Excluding us$ 12 million in branding fees, adjusted property EBITDA at that property jumped 21 percent.

MGM Resorts' 2012 first quarter overall corporate results were affected by several nonoperating factors, including an us$ 81.8 million swing in the company's income tax expense. In 2011, the company had a tax benefit of us$ 54.6 million. This year, it had a tax expense of us$ 27.2 million.

Also, the company recognized a loss of us$ 59 million related to amendments to its senior credit facility and the repayment of certain loans.