MGM Resorts (MGM) Posts Narrower-Than-Expected Q4 Loss; Investors Unimpressed

February 14, 2011 9:07 AM EST
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MGM Resorts International (NYSE: MGM) reported a narrower-than-expected fourth-quarter loss on Monday, but investors were left unimpressed as shares are down in premarket trade.

The casino operator reported a fourth-quarter loss of 20 cents per share, 2 cents better than the analyst estimate for a loss of 22 cents per share.

Net revenue for the company was roughly flat with last year at $1.5 billion, in line with analyst estimates.

The company is planning to publically list shares in its Macau operations in Hong Kong, a move that is expected to raise $800 million with the forthcoming initial public offering.

MGM said that its Macau operations reported record revenue of $119 million.

“2010 has been a transformational year for MGM Resorts International from a balance sheet and liquidity perspective. We have built the foundation needed to benefit from an economic recovery and are highly focused on initiatives such as M life, our new customer loyalty program, to improve our business,” said Jim Murren, MGM Resorts International Chairman and CEO. “We are encouraged in early 2011 by the level of business activity we are seeing."

Shares of MGM are down 3.47 percent to $15.00 in premarket trade on Monday.

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