More (bad news) on the casinos
On the heels of the Harrah's news yesterday, MGM/Mirage just released their numbers today. Not good. Here's the summary: 2007 net income: $1.6 billion 2008 net loss: $855 million No surprise, they blame the economy. Just in the fourth quarter, here's what happened:
Gaming revenues decreased 17% for the fourth quarter. The Company's total table games volume (including baccarat) decreased 17% in the quarter, with the overall table games hold percentage near the midpoint of the Company's normal 18% to 22% range in the 2008 period, lower than the 2007 period when the hold percentage was near the top end of the range. Slots revenues decreased 12% company-wide. Rooms revenue decreased 21% as market conditions impacted rates and occupancy leading to a 21% decrease in Las Vegas Strip REVPAR(1). Average room rates decreased 15% at the Company's Las Vegas Strip resorts and occupancy decreased from 93% to 85%.We're staying at Treasure Island for ISC West (again, we booked our rooms too soon, I fear). There better be some $5 blackjack tables!