(Reuters) -MGM Resorts International missed Wall Street expectations for third-quarter profit on Wednesday, hurt by weak sales at its Las Vegas properties, sending the casino operator’s shares down 5.5% in extended trading. Revenue from the Las Vegas business fell 7% to $2 billion during the period. The company attributed the decline to room remodel at […]
Business
Casino operator MGM Resorts misses profit estimates on weak Las Vegas business
Audio By Carbonatix
(Reuters) -MGM Resorts International missed Wall Street expectations for third-quarter profit on Wednesday, hurt by weak sales at its Las Vegas properties, sending the casino operator’s shares down 5.5% in extended trading.
Revenue from the Las Vegas business fell 7% to $2 billion during the period.
The company attributed the decline to room remodel at MGM Grand Las Vegas, a drop in revenue per available room (RevPAR), a decrease in table games win percentage and lower food and beverage revenue.
For the third quarter ended September 30, its adjusted profit per share of 24 cents missed analysts’ average estimate of 40 cents, according to data compiled by LSEG.
“We are seeing encouraging signs of stability in Las Vegas with the return of the group and convention season and the completion of the MGM Grand room remodel,” said Chief Financial Officer Jonathan Halkyard.
Total quarterly revenue rose 1.6% to $4.25 billion during the quarter, primarily due to a 17% increase in net revenue at MGM China, which represents the company’s operations in China and Macau.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Shilpi Majumdar)