Net income totaled $105.5 million, or 21 cents a share, compared with a loss of $93 million, or 19 cents, a year earlier, the Las Vegas-based company said yesterday in a statement. Analysts projected 10 cents, the average of 20 estimates compiled by Bloomberg.
MGM joins rival Wynn Resorts Ltd. (WYNN) in reporting an increase in gambling in Las Vegas in the second-quarter. Casino revenue at MGM’S domestic resorts rose 6 percent, driven by table games, while room revenue on the Las Vegas strip also advanced 6 percent. At the same time, MGM and other operators are navigating a decline in betting by high rollers in Macau, the only place in China where gambling is legal.
Sales at MGM China fell 1 percent to $828 million in the quarter. Macau has seen a slowdown recently related to the mainland economy and a crackdown by the Chinese government on corruption and illegal money transfers that’s cooled spending, particularly among high rollers.
The unit reported adjusted earnings of $210 million, an increase of 3 percent from a year earlier.
MGM China also announced a dividend of $136 million, which will be paid to shareholders of record as of Aug. 25 on Sept. 1, according to the statement.
Total revenue in the period ended June 30 rose 4 percent to $2.58 billion, beating the $2.57 billion average of estimates.
MGM recorded a $29 million non-cash impairment expense in the quarter, related to its joint venture investment in Grand Victoria.
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