MGM Mirage Posts Loss on CityCenter Woes

LAS VEGAS (TheStreet) -- While most of the casino industry is placing its bets on Macau, MGM Mirage(MGM Quote) is putting its money on Las Vegas, and so far, it's losing.

MGM swung to a loss in the third-quarter, weighed down by hefty charges from its $8.5 billion CityCenter project.

During the quarter, the casino operator recorded a loss of $750.4 million, or $1.70 a share, compared with a profit of $61.3 million, or 22 cents, in the year-ago period.

Results included charges of $1.72 a share, including a write-down of its CityCenter development, which is set to open in December.

Revenue tumbled 13% to $1.71 billion from $1.95 billion last year, but beat analysts' expectations of $1.47 billion.

Regardless, CEO Jim Murren says CityCenter will draw 7% more tourists to Vegas next year compared with this year.

J.P. Morgan analyst Joseph Greff says expectations are too low and CityCenter can exceed forecasts in its first year, boosting other properties on the Strip.

Shares of MGM grew 4.5% Thursday to end the day at $9.74.

Last week, rivals Wynn Resorts(WYNN Quote) and Boyd Gaming (BYD Quote) both posted double-digit profit declines and slumping sales, while Las Vegas Sands(LVS Quote) also recorded a loss.

-- Reported by Jeanine Poggi in New York

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