Inside Gaming: MGM Resorts Up, New Pacts for Calif. Tribes, Wynn Boston Harbor Building Begins

This week’s installment of Inside Gaming shares positive second-quarter numbers reported by MGM Resorts International, tells of agreements upon new casino pacts between California and several tribes, reports on the start of construction of the new Wynn casino resort in Massachusetts, and points you to news regarding the closure of the Trump Taj Mahal.

Crystals Sale Makes for Strong 2Q Report for MGM Resorts International

This week MGM Resorts International reported its second-quarter earnings for the year, and the news was good for the company with profit exceeding observers’ estimations.

The Associated Press says the “Las Vegas company reported net income of $474.4 million, or 83 cents per share” for April-June 2016, a huge jump over the “$42.9 million, or 17 cents per share, in the same quarter a year ago.”

The results were well above what Wall Street had predicted, with three analysts from Zacks Investment Research having made an average estimate of just 21 cents per share prior to the report.

The bottom line changed markedly thanks to the MGM’s sale of its share of The Shops at Crystals, netting a $406 million gain. Meanwhile revenue actually fell about 5 percent to $2.27 billion, with casino revenue dipping 9 percent during the quarter, summarizes the AP.

As MGM Resorts International notes in its press release, the quarter was also highlighted by the company having closed its acquisition of Boyd Gaming Corporation’s interest in the Borgata Hotel Casino & Spa, as we reported in June.

MGM Resorts was predictably optimistic regarding the report and future prospects.

“I am incredibly proud of the concerted effort of our talented executive teams and employees that produced our most profitable quarter in eight years at our domestic resorts,” stated Jim Murren, MGM’s Chairman and CEO.

Worth noting as well from the report, MGM China’s net revenues were down 19%, operating income scaled back 11%, and adjusted earnings before interest, taxes, depreciation and amortization down 9%, again reflecting how the company’s Las Vegas operations are outpacing those in Macau. Not unrelatedly, MGM Resorts has also announced the opening of its new MGM Cotai property has been postponed (again) to the 2Q of 2017.

Read more about MGM’s 2Q from the Associated Press. You can also see the entire press release and all the …

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