MGM Resorts’ profit surpasses analysts’ predictions

MGM joins rival Wynn Resorts in reporting an increase in gambling in Las Vegas in the second-quarter. Casino revenue at MGM’S domestic resorts rose 6 percent, driven by table games, while room revenue on the Las Vegas strip also advanced 6 percent. At the same time, MGM and other operators are navigating a decline in betting by high rollers in Macau, the only place in China where gambling is legal.

The shares rose 0.9 percent to US$ 26.68 in New York. Through yesterday, they had increased 12 percent this year.

Sales at MGM China fell 1 percent to US$ 828 million in the quarter. Macau has seen a slowdown recently related to the mainland economy and a crackdown by the Chinese government on corruption and illegal money transfers that’s cooled spending, particularly among high rollers.

MGM China also announced a dividend of US$ 136 million, which will be paid to shareholders of record as of August 25 on September 1, according to the statement. Total revenue in the period ended June 30 rose 4 percent to US$ 2.58 billion, beating the US$ 2.57 billion average of estimates.

MGM recorded a US$ 29 million non-cash impairment expense in the quarter, related to its joint venture investment in Grand Victoria.