By Shane McGinley
MGM Resorts International, Dubai World’s partner in the City Centre project in Las Vegas, reports Q3 loss of $318m
MGM Resorts International, the Las Vegas casino developer
which is involved in an $8.5bn joint venture with Dubai World, reported a $318m
loss for the third quarter but said business was recovering.
"We continue to see the Las Vegas market
stabilising," MGM Resorts International chairman and chief executive Jim
Murren said in a statement.
Dubai World is involved in a joint venture with MGM
Resorts International at the $8.5bn CityCenter project on the Las Vegas Strip
and Murren added that Aria – City Center’s main casino – “is ramping up”
business since it opened in December last year.
MGM's third-quarter net loss narrowed to $318m, a 57
percent from the $750.4m loss in the same period a year earlier.
The latest results included another writedown of
CityCenter, a high-end complex known for its clean, modern lines rather than
the neon and glitter of the Strip. CityCenter has struggled as
recession-battered consumers and businesses have cut back on travel and
The company, which aims to cut its heavy debt load,
recently raised $1bn in the equity and debt markets, pushing out its debt
maturities to 2013.
"While liquidity risks are minimised, we remain
cautious on MGM's operating performance," Jefferies and Co analyst David
Katz said in a research note.
MGM and Dubai World are also looking to refinance
CityCenter's $1.85bn debt. "There is lots of interest in a new debt
structure at CityCenter," Murren said on a conference call. "We want
to get something done by the end of the year."
MGM owns ten Las Vegas Strip resorts as well as
casino-resorts in Mississippi and Michigan and joint ventures in New Jersey and
Net revenue, excluding reimbursed costs, fell three percent
to $1.5 billion.
"Things may be improving, but probably a little more
slowly than investors had been expecting," Jacob said.
Why is Dubai World investing in a company that is involved in gambling?
The reason Sonny is because, according to DW statements, it is a hotel, not a casino.
How shabby of you AB, to edit my comment so as to effectively reverse its (true) meaning. The MGM project is indeed, primarily, in P&L terms, a casino. The point is that DW's claim otherwise is mendacious.
Believe me, I've been there, ARIA is the casino, actually a large one.