MGM Mirage reported first-quarter results this morning, and they were impressive.
Net revenues in the quarter were up 13% to $1.2 billion, with property-level EBITDA (earnings before interest, taxes, depreciation, and amortization) up 18% to a quarterly record $437 million, and operating income up 15% to $293 million. Meanwhile, adjusted earnings from continuing operations climbed from $0.70 in last year's first quarter to a record $0.87 per share, blowing away the analysts' earnings estimate of $0.75 per share.
MGM Mirage showed strong gains across the board -- by virtually every metric. Citing a "solid" convention calendar and "increased visitation to Las Vegas," the hotel operations on the Las Vegas Strip continued to gain momentum. RevPAR (revenue per available room) climbed 15% to $167, as occupancy rates edged up to 92% from 90% last year, and the average daily room rate (ADR) jumped to a record $155 from $138 in the first quarter of 2004.
With particularly high levels of play during the Super Bowl and Chinese New Year periods, casino revenue increased 10%. Baccarat play alone was up a whopping 39%. Company-wide slot revenue was also up 13%, with the flagship Bellagio property showing an impressive 30% gain.
Meanwhile, the company's property-level EBITDA margin edged up to a record 36% from 35% in Q1 2004.
Overall, it was yet another fantastic quarter, with no sign of slowdown, for a major Strip player. Looking ahead, MGM Mirage expects RevPAR growth of 10% for the second quarter, with adjusted earnings between $0.70 and $0.75 per share. The current analysts' estimate is $0.74 per share.
Separately, CEO Terry Lanni said on a conference call that the $7.9 billion acquisition of fellow Strip giant Mandalay Resort Group
This morning, MGM Mirage also announced that its 50-50 partnership with Pansy Ho Chiu-King had been granted a sub-concession to build the $975 million MGM Grand Macau on a site next to a new hotel being built by Wynn Resorts
Rival Harrah's Entertainment
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Fool contributor Jeff Hwang owns none of the companies mentioned above.