MGM MIRAGE Reports Third Quarter Results for Sg Online Casino

 

 

MGM MIRAGE today reported earnings before nonrecurring expenses of 19 cents per diluted share for the 2001 third quarter, compared with 45 cents per diluted share in the 2000 quarter. Consolidated net revenue was down 5.3% to $993 million in the 2001 quarter compared with $1.05 billion in the comparable 2000 quarter. For the three months ended September 30, 2001, operating cash flow (“EBITDA”) was $236.5 million when compared with $336 million in the prior year’s quarter. Net income before nonrecurring expenses during the 2001 quarter was $30.1 million compared with $73.2 million in the prior year’s quarter.

 

These results reflect a substantial decline in business volumes at the Company’s hotel and casino resorts immediately after the terrorist attacks of September 11, 2001. The Company’s hotels on the Las Vegas Strip averaged an unprecedented low 64% occupancy level from September 11th through September 30th. This reduction in customer traffic also resulted in lower casino, food and beverage and retail revenue. Mid-week occupancy levels have now significantly improved, and weekend occupancy has nearly returned to pre-attack levels, albeit at reduced rates. Accordingly, casino and non-casino revenue continue to rebound.

 

“Prior to the events of September 11th, our Company was on track to achieve another strong quarterly operating performance. Obviously the result of the terrorist attacks had a profound impact on the hotel and travel industry and our business,” said Terry Lanni, Chairman and Chief Executive Officer of MGM MIRAGE. “Our management team undertook a detailed analysis of our current operations in terms of the impact of September 11th. To respond to these historic challenges, we implemented cost containment strategies which included a significant reduction in payroll and a refocusing of several of our marketing programs. The objective of this approach is to rebuild revenue and profitability in …