Posted - 02/19/2010 : 08:18:46 AM
| Land-Based Casinos take a hit MGM Mirage,Las Vegas Sand
MGM Mirage loss wider than expected, stock drops
LOS ANGELES (Reuters) - MGM Mirage (MGM.N), posted a wider-than-expected fourth-quarter loss on Thursday as it slashed hotel room rates to attract gamblers, sending its shares spinning as much as 8.6 percent lower.
MGM, which opened the $8.5 billion CityCenter project on the Las Vegas Strip in December, posted a loss of 21 cents a share before one-time items, much worse than analysts' average forecast of a loss of 13 cents, according to Thomson Reuters I/B/E/S.
The company's Las Vegas revenue per available room or revPAR -- a combination of occupancy and rate -- fell 16 percent in the fourth quarter. The number has dropped 38 percent over the past two years, according to Goldman Sachs.
A room at the MGM Grand can now be had for $55 a night, including free Internet, gym access, nightclub entry and local phone calls.
Las Vegas Sands narrows loss on Macau strength
Company still sees weakness on the Las Vegas Strip
Las Vegas Sands Corp. today said its loss narrowed in the fourth quarter of 2009 thanks to strong business in China -- but the company also reported continued weakness at its Las Vegas Strip hotel-casinos.
The company lost $113.9 million or 17 cents per share vs. a loss in the year-ago quarter of $136.5 million or 27 cents. Quarterly revenue of $1.28 billion was up 17 thanks to strong results in Asia, where the company has casinos in the Chinese district of Macau and is preparing to open a big resort in Singapore.
By Steve Green
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