With MGM Mirage
So what does all that break down to in dollars and cents?
This morning, the company posted record second-quarter property EBITDA (earnings before interest, taxes, depreciation, and amortization) of $567 million, record adjusted earnings of $0.46 per share, and record net revenues of $1.7 billion. Naturally, all of these measures were sharply higher, thanks in part to the addition of Mandalay's business.
However, MGM Mirage's organic growth was healthy as well, with "same-store" revenues climbing 11% to $1.2 billion. On the casino floor, players fed slot machines 7% more money than in last year's second quarter, led by a 30% spike at the company's flagship Bellagio resort, while volume at the tables was up a modest 3%. With Mandalay's operations included, total casino revenues came in 39% higher.
What some may not realize, though, is that gambling revenues represent a shrinking portion of MGM Mirage's (and many peers') top-line picture -- 45% as of last quarter. Lodging, dining, entertainment, and other amenities increasingly make up the balance. And non-casino revenues surged 83% during the quarter, or 19% without Mandalay's assistance.
The sharpest improvement was generated by the company's hotel operations, which are benefiting from a nationwide rebound in occupancy and pricing. Yesterday, hotel operators Starwood
While this morning's results were encouraging -- though not spectacular -- MGM Mirage has large ambitions, with several high-profile projects on the horizon. The company has recently broken ground on a $975 million waterfront resort in the Chinese gaming enclave of Macau (billed by some to be the next Las Vegas) where it will eventually compete with the likes of Las Vegas Sands
There are also fascinating plans in place to revitalize the partially vacant land where the aging Boardwalk casino now sits. The massive 66-acre "Project City Center" development is slated to feature an array of hotels and private residences, and more than a half-million square feet of upscale dining, shopping, and entertainment spots.
From the low-end Circus Circus to the luxurious Bellagio, MGM Mirage now has a property portfolio that covers the entire spectrum -- and thus the ability to capture penny-slot players and high-rollers alike. As long as the Las Vegas market (where roughly three-fourths of the company earnings are generated) remains healthy, MGM's chips should continue to pile higher.
Fool contributor Nathan Slaughter hasn't visited Las Vegas in nearly three months and is eager to return. He owns none of the companies mentioned.