Profits up at MGM Mirage
Net income at MGM Mirage more than doubled in 2006 thanks in no small part to the company’s ten Las Vegas strip casinos, the firm has announced.
Net income for 2006 totalled $201.6 million, compared to $97.8 million in 2005, MGM said.
Meanwhile quarterly revenue was similarly healthy, increasing by 11 per cent from $1.66 billion to $1.85 billion.
“MGM Mirage shares have traded up dramatically the past few months, we believe primarily due to expectations of corporate finance activities. [The] results showed more fundamental strength and illustrate MGM Mirage’s operating prowess,” said Steven Kent, gaming analyst at Goldman Sachs.
Company officials predicted similar success in the forthcoming year.
“As demonstrated by the significant increases in cash flow at The Mirage and MGM Grand, our efforts at Mandalay Bay, Luxor and several other properties should lead to increased customer volumes and better pricing at these resorts,” said president and chief financial officer Jim Murren.
MGM is again considering a plan to build a casino in Atlantic City, according to reports this week. The gaming giant has been constantly rumoured to be moving into the area for the past ten years.