MGM Loses

The Las Vegas Strip in general has been struggling in recent years and MGM Resorts International is no exception. The company announced Thursday morning that its second quarter loss exceeded $800 million.

The company reported that its loss a year ago, for the same quarter, was $212 million, while the loss in this third quarter this year was $883 million, or $2 a share. Analysts were predicting a loss of 24 cents per share, so the news was a blow to expected results.

The company reports that it believes much of the loss is due a $1.12 billion impairment charge related to the construction of CityCenter, the $8.5 billion development hat opened on the Strip in December. MGM shares ownership 50-50 of the City Center with Dubai World, the Persian Gulf emirate’s investment arm.

Despite the bottom line reports, many MGM officials say they believe that the company is rebounding. Aria, the 4,000+-room hotel casino that opened recently, reported an increase in occupancy in the third quarter and also reported that its non-casino revenues increased.

Net revenue companywide actually increased in the third quarter to $1.54 billion, compared with $1.46 billion in the first quarter of 2010.

While CityCenter has struggled, and its total operating loss in the third quarter was $128 million, it also reported net revenues of $401 million. Experts say the area is developing nicely.

Reports show that overall room occupancy is up in Las Vegas, thanks in large part to an increase in convention bookings.