MGM Resorts International (MGM) reported a profit of $6.22 a share on income of $3.44 billion in the second quarter, propelled by its China operations.
The casino and hotel company reversed a year-ago loss of $883 million, or $2 a share.
The results include a gain of $3.5 billion (or $6.30 per share) from the Las Vegas-based company acquiring a controlling interest in MGM China Holdings.
Excluding the gain from the China acquisition, MGM had an adjusted loss of 8 cents a share, better than the 13-cent loss expected in a survey of analysts by Thomson Reuters.Net revenue for the second quarter was $1.8 billion, up 17%; net revenue related to MGM China for the period of consolidation (June 3 through June 30) was $193 million. Net revenue from the domestic resorts segment was $1.5 billion, an increase of 4% year over year. Room revenue increased 9%, with a 10% increase in revpar at the Las Vegas Strip resorts. TheStreet's Jeanine Poggi interviewed MGM CEO Jim Murren recently, and Murren emphasized that the company saw more opportunites away from casinos. The prior year's results include a non-cash charge of approximately $1.12 billion (or $1.64 per share, net of tax) relating to an impairment of the company's investment in the CityCenter joint venture in Las Vegas.
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