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Loss of $96.7 million

MGM Mirage lost $96.7 million in the first quarter, news that was not a surprise to Wall Street after the company pre-announced earnings last month.

The casino giant, which operates 10 Strip resorts, said this morning the net loss translated into a loss of 22 cents per share for the quarter that ended March 31. A year ago, MGM Mirage reported a net income of $105.2 million, or 38 cents a share. Analysts polled by FactSet Research expected a loss of 24 cents a share.

Companywide revenues were $1.46 billion, down from $1.5 billion a year ago.

As previously reported, MGM Mirage confirmed that CityCenter, the $8.5 billion Strip development that opened in December, suffered an operating loss of $255 million in the quarter, which included a $171 million non-cash impairment charge related to its residential inventory and other expenses totaling $75 million. CityCenter reported net revenues of $260 million.

Aria, CityCenter’s centerpiece 4,004-room hotel casino, reported net revenue of $160 million and an operating loss of $66 million, which included depreciation expense of $54 million. Aria’s hotel occupancy percentage was 63 percent with an average daily room rate of $194.

In a statement, MGM Mirage Chairman and Chief Executive Officer Jim Murren said CityCenter’s results were affected by weakness in the Las Vegas convention market. However Murren is optimistic heading for the rest of the year.

“We see signs of improvement in the Las Vegas market and expect those to accelerate in the second half of the year and into 2011,” Murren said. “Our forward bookings continue to improve as our convention bookings continue to gain traction.”

Murren said MGM Mirage is unveiling a comprehensive new marketing effort for Aria in the coming weeks he expects Aria’s occupancy to improve over the balance of the year.

MGM Mirage pointed toward improved results at the MGM Grand Macau. The resort reported operating income of $49 million in the quarter of 2010 compared to an operating loss of $5 million in the same quarter of 2009.


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