Shares of MGM Resorts International (MGM) - Get MGM Resorts International Report wavered after the Las Vegas casino-holding company reported it swung to a first-quarter net loss from a year-earlier profit on 27% lower revenue.
The figures were stronger than Wall Street analysts estimated. The casino industry, like most industries, is recovering from the coronavirus pandemic, which started last March.
"Consumer demand strengthened at our domestic properties, and the significant changes we've made to our operating model have positioned us to capitalize on the recovery,” President and Chief Executive Bill Hornbuckle said in a statement.
For the quarter MGM Resorts posted a loss of 69 cents a share compared with net income of $1.64 a share in the year-earlier quarter. The latest adjusted loss was 68 cents a share.
Revenue dropped to $1.65 billion from $2.25 billion.
A survey of analysts by FactSet produced consensus estimates of a GAAP loss of 79 cents a share, or an adjusted loss of 85 cents a share, on revenue of $1.59 billion.
At last check MGM Resorts shares ticked up 0.1% to $42.06. They closed regular Wednesday trading off 0.4% at $42.02. The stock touched a 52-week high $42.74 on April 6.
“Las Vegas operating results improved sequentially, leisure demand is improving, and we now have a tangible path to bring conventions and entertainment back at scale," Hornbuckle said.
“MGM China continued to outperform the broader Macau market's gradual pace of recovery."
"We are also deeply focused on our long-term goals, including investing in digital to drive deeper customer engagement and BetMGM, our U.S. sports betting and iGaming venture.”
Most recently, a joint venture of MGM Resorts and Dubai World, which is held by the government of Dubai, agreed to sell a two-acre site on the Las Vegas Strip for $80 million.
The buyer is 63SLVB, a company owned by the retail developers Brett Torino and Paul and Dayssi Kanavos. The developers plan a multilevel complex including specialty retail and casual and fine dining. That deal should close this quarter.