$181 million loss for MGM Resorts in Q3

MGM Resorts International on Wednesday reported its loss for the third quarter widened, however the gaming company posted improved revenue, led by its business in Macau.

The Las Vegas-based company lost $181.2 million in the three months ending September 30th compared with a loss of $123.8 million a year earlier.

Revenue rose 1% to $2.25 billion from the year-earlier quarter. The company attributed the increase to a 7% rise in sales at its Chinese subsidiary, MGM China in Macau.

The MGM China unit, which accounts for early 30% of the company’s overall business, gained approval earlier this month to build a $2.5 billion casino on the Cotai Strip, its second resort in Macau.

MGM Resorts Chairman and CEO Jim Murren said it will be a matter of months until the company breaks ground on the Cotai resort, with a completion date of three years. He didn’t believe the project would suffer from a slowdown in the Chinese economy.

“Gaming in Macau is a $36 billion to $37 billion industry today,” Murren said. “We are only scratching the surface. It’s a young market. We are helping to drive it to become a $50 billion plus gaming market.”

MGM Resorts competes with Wynn Resorts Ltd. and Las Vegas Sands Corp. in Macau, the world’s largest gambling region.

MGM Resorts’ revenues have improved over the last few years, driven by steady growth in Macau and improved figures from its Las Vegas hotels and casinos after a share downturn during the recession.

“Our third-quarter operating results are reflective of a challenging consumer environment,” Murren said. “But we had some bright spots with strong results from MGM Grand Las Vegas and The Mirage and record third quarters from MGM China and City Center.”

Murren said fourth-quarter “trends are improving at our domestic resorts and forward convention booking pace is showing growth in 2013 and is further accelerating into 2014.”

MGM Resorts, which owns a dozen casinos on the Strip and others cross the country, reported revenue at U.S. casinos increased 2%. However, room revenue was off by 3% as Strip revenue per available room declined 2% as the occupancy rate fell to 92% from 95%.

“We are still far from where we were in 2006 and 2007 in terms of spending patterns,” Murren said. “But we are getting there. The consumer is coming back to Las Vegas.”