Shares of casino and hotel operator MGM Resorts (MGM) - Get MGM Resorts International (MGM) Report fell in Tuesday after the company reported earnings that came in substantially lower than analysts' forecasts, mainly due to falling gambling revenue at its Las Vegas properties.
MGM said it earned $31 million, or 5 cents a share, in its first quarter, down substantially from $223 million, or 38 cents a share, in the comparable year-earlier period. On an adjusted basis, the company posted per-share earnings of 12 cents, still far below the 22 cents expected by analysts surveyed by FactSet.
Revenue for the quarter came in at $3.2 billion vs. $2.8 billion a year ago. Operating income was $370 million vs. $360 million. Adjusted earnings before income, taxes, depreciation and amortization were $740 million in the current quarter compared with $701 million in the prior-year quarter.
One number that jumped out was the company's first-quarter casino revenue figure, which dropped 13% from the prior year quarter at the company's Las Vegas strip resorts "due primarily to a 17% decrease in table games win," MGM said.
That jives with other casino operators who have also reported a more than 6% slowdown in gaming revenue for the first quarter, according to recent data released by the Gaming Control Board.
Shares of MGM fell more 4% in early trading on Tuesday to $27.46.
Separately, MGM announced on Tuesday that its subsidiary, MGM China Holdings, plans to raise $1.25 billion in a private placement of senior notes to restructure some of its longer-term debt.