MGM tops forecasts on Borgata purchase
LAS VEGAS (AP) — MGM Resorts International says its acquisition of The Borgata, Atlantic City’s top casino, helped push revenue up 23 percent over last year’s third quarter, leading to earnings that beat Wall Street expectations.
The Las Vegas-based company said it had net income of 93 cents per share over last year’s third quarter, which included $0.60 related to a $430 million gain on the purchase of Boyd Gaming’s 50 percent stake in the Borgata. That’s compared with 12 cents per share during the same quarter in 2015. Earnings, adjusted for non-recurring gains, came to 58 cents per share.
The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 8 cents per share.
The casino and resort operator said an increase in table games and slots revenue also help push third-quarter net income to $535.6 million, compared with $66.4 million for the same period last year.
In August, The Borgata reported winnings of nearly $85 million in July, its best month ever and a 12.1 percent increase over July 2015. That came as competitor Trump Taj Mahal posted an 8.2 percent revenue decline amid a strike by the city’s main casino workers’ union and led to its closing last month.
MGM posted revenue of $2.52 billion in the period, also beating Street forecasts. Five analysts surveyed by Zacks expected $2.37 billion. The company had revenue of $2.28 billion in the same period last year.
MGM shares rose almost 5 percent in morning trading and have climbed 20 percent since the beginning of the year. The stock has risen about 14 percent in the last 12 months.
This story was generated in part by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MGM at https://www.zacks.com/ap/MGM
Keywords: MGM Resorts, Earnings Report