Boston, MA 11/04/2013 (wallstreetpr) – For improved gambling revenue and paying less interest on debt, MGM Resorts International (NYSE:MGM) was able to cut its Q3 losses, and this saw the stock of the $9.45 billion capped Las Vegas-based company gain traction on the NYSE browser, gaining 1.37% to settle at $19.30 per share on Friday, a day that also so the company’s traded volume exceed the daily average.
In the three months quarter ending Sept 30, the company generated a loss of $31.9 million, or $0.07 a share. In the comparable quarter last year, the casino and lodging company lost $0.37 a share or $181.2 million. The company’s brands include The Mirage, MGM Grand and Bellagio. The company’s revenue gapped up 9% to $2.46 billion, with casino revenue going up 13%, posting the strongest revenue jump among its other segments such as food and drinks selling, entertainment and retail and hotel rooms booking. In adjusted earnings, MGM generated earned $0.02 profit per share, coming in front of the Wall Street estimates. However, its margin came weaker than expected.
Generally, gambling companies in the U.S. have yet to recover their footing after the economic downturn. This explains why several casinos have been casting their view abroad for growth to improve their bottom line. One such abroad gambling market is Macau in China, the latest gambling capital of the world and the only place where casino gambling is legal in China. In this city (Macau), MGM generated $808 million in revenue for the Q3, indicating 22% growth from a year earlier.
In the U.S., the casino resorts operator witnessed its room revenue gap up 5%. The company’s Las Vegas Strip reported 3% increase in revenue on revpar. The company’s CEO Jim Murren said at the Q3 data conference call that the company’s target at resorts investment in Las Vegas was paying off well, a referring to the Las Vegas Strip properties which noted increase in its revenue in the last reported quarter.