MGM's 4Q Loss Worsens on Flat Revenue, Higher Expenses

By FOXBusiness

MGM Resorts International (NYSE:MGM) said Wednesday that its fourth-quarter loss widened sharply on a slew of one-time charges and flat revenue.

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The Las Vegas-based casino and resort operator posted a loss of $1.2 billion, or $2.50 a share, compared with a year-earlier loss of $113.7 million, or 23 cents.

MGM said a string of special items including impairment charges and write-offs that are part of broader efforts to reduce debt impacted shares by $2.27 during the quarter. Excluding those, analysts in a Thomson Reuters poll had been calling for a loss of 23 cents.

Revenue for the three months ended Dec. 31 was $2.29 billion, flat from a year ago and narrowly below the Street’s view of $2.31 billion, as am improvement in casino and room revenue was offset by declines in its entertainment, food and beverage and retail segments.

"2012 was a transformational year for MGM Resorts International highlighted by major improvements in our financial position, significant progress on future growth opportunities and strengthening of our company culture,” MGM Chief Executive Officer Jim Murren said.

MGM, which announced efforts earlier this month to be readmitted as a licensed gaming operator in New Jersey through its investment in Atlantic City’s Borgata, has struggled to turn a profit over the last few years.

Expenses last quarter jumped 24% to $7.72 billion.

In Macau, meanwhile, sales continue to improve thanks to robust demand for table games and slots, growing some 2% to $731 million.