MGM Resorts reports narrower loss, ADR stays steady

LAS VEGAS MGM Resorts International lost about US$139 million during the fourth quarter, but that result is a 68% improvement over the US$434 million the gaming giant lost a year ago.

Total RevPAR for the quarter was off 2%. The company blames an oversupply of hotel rooms on the Las Vegas Strip for a slight two-point drop in occupancy during the quarter. As expected, its CityCenter joint venture posted a big loss of US$169 million, with MGM’s share amounting to US$37 million.

Overall room revenue is down 5% from the fourth quarter of 2009, although some of that drop was absorbed by higher resort fees at its Vegas properties. MGM properties charged an ADR of US$110 during the quarter, which is consistent with a year earlier.

The company has seen strong results in Macau, however, where its share of profits from the MGM Macau joint venture increased by US$49 million.

Overall, fourth quarter net revenue of US$1.5 billion is down 1% from the fourth quarter of 2009.