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MGM Resorts International Reports CityCenter Ends 2011 on Upswing;
Revenue Up & Losses Down

Plans to Pay Off Some Debt with Issuance of $240 million in New Notes

By Steve Green, Las Vegas SunMcClatchy-Tribune Regional News

Feb. 13, 2012--MGM Resorts International on Monday disclosed that business improved during the fourth quarter for its half-owned $8.5 billion CityCenter casino resort complex on the Las Vegas Strip.

In releasing select financial data for CityCenter, MGM Resorts said its quarterly net revenue was about $269 million, up from $257 million during the fourth quarter of 2010.

The company didn't disclose if the higher revenue was driven by higher visitor volumes, increased spending by guests or improved condominium sales at CityCenter, or all three.

Business has been picking up for Las Vegas Strip hotel-casino operators, which endured sharp declines during the recession.

The Las Vegas Convention and Visitors Authority reported last week that 38.9 million people visited the city in 2011. That's up 4.3 percent from 2010 and is the second-highest visitor tally in the city's history.

In December, Las Vegas hosted 2.957 million people, up 2.5 percent from December 2010.

But room occupancy of 73.1 percent and the average room rate of $101.58, while up from 2010, were well off the boom-year month of December 2006. At that time, occupancy was 81.3 percent and average room rate was $107.51.

MGM Resorts, in the meantime, also said Monday that CityCenter's operating loss in the quarter was about $45 million, down from about $104 million in the 2010 quarter.

The 2011 quarterly operating loss included about $99 million in noncash expenses for depreciation and amortization.

The operating results don't include interest expenses for the resort complex.

MGM Resorts disclosed some of the CityCenter results on Monday as it revealed CityCenter would pay off some $300 million of its $2.5 billion in debt.

The sources of the $300 million are $240 million in new notes and CityCenter's cash on hand.


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