MGM Posts Surprise First Quarter Profit
MGM Resorts International posted a surprise profit for the first quarter thanks to room bookings and gambling tables in Las Vegas and Macau.
The CEO, Jim Murren, said that it was the best first quarter since the beginning of the recession five years ago. In the first three months of the year MGM earned $6.5 million, or 1 cent per share, in stark opposition to a loss of $217.4 million a year ago. Analysts had widely predicted a loss of 10 cents per share.
MGM operates 15 casinos across Nevada, Mississippi and Michigan and is also the majority owner of MGM China Holdings which operates the MGM Macau casino-resort and is developing a new Cotai resort.
Macau has been the world capital of gambling since 2006 and has helped sustain the major casino operators over the course of the recession.
However, MGM also saw good results in the US. Revenue from rooms at MGM hotel-casinos rose 2% while table game revenue rose 16%.
After the report MGM shares rose by almost 8% and set a 52-week high of $14.90. Since the beginning of this year MGM shares have risen by about 25%.