MGM Mirage profit jumps due to divestiture and sales

LAS VEGAS (AP) — MGM Mirage Inc., operator of the MGM Grand, Bellagio and other casinos, said Thursday its second-quarter profit more than doubled, boosted by a gain on the divestiture of some properties and sales of Las Vegas condominiums.

The company, majority owned by billionaire Kirk Kerkorian, saw record profits at several of its Las Vegas hotel-casinos, but had an unlucky run at the baccarat tables and said it suffered as competitors with casinos in Macau were able to attract new high-end gamblers from China to their properties in Las Vegas.

Earnings soared to $360.2 million, or $1.22 per share, in the three months ended June 30 versus $146.4 million, or 50 cents per share, in the same period the previous year. The latest results include a $263.9 million pretax gain on the sale of Primm Valley Resorts and MGM's Colorado Belle and Edgewater properties in Nevada.

Income from continuing operations rose to $182.9 million, or 62 cents per share, compared with $143.3 million, or 49 cents per share.

Analysts expected net income on that basis of 58 cents per share, according to a Thomson Financial poll.

Quarterly net revenue after promotional allowances rose 10 percent to $1.94 billion from $1.76 billion a year ago.

MGM rose $2.59, or 3.6 percent, to $74.89 Thursday, but fell in after-hours trading by 92 cents, or 1.2 percent, to $73.97.