MGM CEO sees bookings rebound after Las Vegas shooting
MGM's (NSYE:MGM) Chairman and CEO Jim Murren has the delicate task of mangaging a public company after his hotel was the centerpoint for gunman Stephen Paddock, a 64-year-old high-stakes gambler and real estate investor, who unleashed a barrage of gunfire at concertgoers from his high-rise suite at the Mandalay Bay hotel and casino on October 1st. The worst mass shooting in U.S. history.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MGM | MGM RESORTS INTERNATIONAL | 38.29 | -0.05 | -0.13% |
In a statement, Murren said the company expects a "short-lived" uptick in cancellations to have a near-term effect, along with a temporary suspension of marketing efforts. Revenue per available room, a key measure, will likely see a percentage decline in the single digits."Since restarting such (marketing) efforts, our booking pace has largely rebounded to normal levels," he said.
Murren also addressed the tradegy within the earnings statement, "We again wish to thank our employees and first responders – including the men and women who acted heroically –for their incredible acts of compassion and courage during the tragic and senseless events of October 1(st), a date we will not forget. We are grateful to our loyal guests, partners and the many corporate and civic leaders who have stood beside us during the most challenging of days. We remember all those we lost and continue to pray for those who are working toward recovery," said Murren.
MGM posted third-quarter net income of $149.1 million, its first quarterly financial report since a deadly mass shooting which did not impact current results. But, cancellations and marketing suspensions are expected to weigh down fourth-quarter results.
The Las Vegas company's third-quarter profit translates to 26 cents per share, or 33 cents per share when adjusted for non-recurring items. That's in line with Wall Street expectations, according to a survey by Zacks Investment Research.
Revenue jumped 12.3 percent to $2.83 billion, surpassing Street forecasts of $2.77 billion.
Revenue per available room, a key measure for hotels and resorts, rose 4 percent to $156 at the company's Las Vegas Strip resorts.
Casino revenue jumped 32 percent as the company continues to incorporate the Borgata Hotel Casino and Spa into its operations. It purchased the casino and resort in August of 2016.
Shares of MGM Resorts International have risen 9 percent since the beginning of the year.
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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MGM at https://www.zacks.com/ap/MGM