Thursday, April 15, 2010

MGM projects wider-than-expected 1st-qtr loss

MGM Mirage (MGM.N) on Wednesday projected a wider-than-expected loss for the first quarter due to weak results in Las Vegas, including the company's new $8.5 billion CityCenter development.

"I think investors were really hoping for more" after Nevada reported last week that gambling revenue on the Strip rose nearly 33 percent in February from a year earlier, said Matthew Jacob, an analyst at Majestic Research.

MGM said operating losses at CityCenter, which opened in December, will total $255 million for the quarter.

In the first quarter, "Las Vegas was still very weak ... there were some pockets of strength, like international business, but for the most part it was very challenging," MGM Mirage Chief Executive Officer Jim Murren told Reuters in a telephone interview.

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