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MGM Resorts third-quarter loss narrows; margins disappoint

Thursday, 31 Oct 2013 | 11:25 AM ET

LOS ANGELES, Oct 31 (Reuters) - MGM Resorts International posted a narrower third-quarter loss on Thursday but analysts were disappointed by lower-than-expected margins at its Chinese and Las Vegas operations.

MGM's net loss slimmed to $31.9 million, or 7 cents a share, from $181.2 million, or 37 cents, a year earlier. Excluding items, analysts, on average, looked for a loss of 3 cents a share, according to Thomson Reuters I/B/E/S.

Revenues rose 9.2 percent to $2.46 billion.

UBS Analyst Robin Farley said the results fell shy of her expectations, citing Las Vegas margins of 22 percent versus Wall Street's estimate of 23 percent, and down from 24.8 percent in the second quarter.

At its operations in Macau, the Chinese gambling enclave, Farley said margins were also slightly below her estimate.

Shares dropped 4.4 percent to $19.39.

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