MGM Mirage Suffers Losses for the First Part of the Year
On May 6th, 2008, MGM Mirage, the owner of MGM Grand Detroit commented that their profits for the 1st quarter of the year, bogged down by expenses from opening new casino facilities like in Detroit and lost profits as U.S. players refrain from playing in casino facilities because of the weak economy. Net profit slid down to $118.3 million or forty cents per share from $168.2 million or fifty-seven cents per share.
Revenues also slide down to $1.88 billion. The company commented that the operating incoming slide down to twenty-three percent for the 1st quarter of the year to $341 million as a result of the decreased in profits and the increase operating expenses for the MGM Grand Detroit. The officials of MGM Mirage commented that the profits of the company were affected by a January 25th, 2008 fire at the Monte Carlo Casino facility in the Las Vegas strip, which was shut down through mid-February.
MGM Grand Detroit profits were $144 million in the 1st quarter of the year, which improved from $116 million compared to the same period last year. The property's profits also stayed at $34 million, held down by bigger operating expenses. The company said that they are placing their hopes on MGM Detroit, even with the weak results from the permanent casino and hotel facility that opened its doors to public on October 2007.
MGM Mirage Chief Executive Officer Terry Lanni commented that Detroit has earned good reviews and is an investment that can give good results in the long run. MGM Mirage has dismissed 100 employees in March and April in Detroit, where it now employs around three thousand people.
MGM Mirage CFO Daniel D'Arrigo commented that when they open the casino to the public, they were overstaffed and spend a lot of money as they fix the things needed in the casino. He added they are still continuing to improve their facility even with the condition of the economy.
05/20/2008 02:02 PM
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