Vegas Q1 Earnings Take Dips
Rachel Wimberly -- Tradeshow Week, 5/15/2009 3:40:00 PM
Sin City couldn’t catch a break in the first quarter of this year, with earnings at Las Vegas Sands, MGM Mirage and Boyd Gaming all taking hits.
Sands saw declines in the first quarter this year, posting a net income loss of $35 million, compared with a loss of $11 million in the same period last year.
MGM, too, dipped in the first quarter as its net income dropped to $105 million from $118 million in the same period last year, an 11-percent decrease.
At Boyd Gaming, the first quarter of ’09 started out a little more favorably, with a net income loss of $13.8 million, compared with a net income loss of more than double that, $32.5 million, in the same period last year.
“The recession continues to impact our business, but we’re encouraged by some positive trends that developed during the quarter,” said Keith Smith, president and CEO of Boyd Gaming.
He pointed out positive earnings results coming from properties in the Midwest, South and downtown Las Vegas.
“These regional performances helped to offset difficult economic climates in Las Vegas and Atlantic City, and demonstrate the value of geographic diversification in our company,” Smith added.
Sands overall first-quarter revenue for the company was more positive, holding stable at $798 million, compared with $795 million in the same period last year, a 0.05-percent increase.
Sheldon G. Adelson, Sands’ chairman and CEO, said of his company’s net income losses, “The steady execution of the business plan we presented in November 2008, including the implementation of our cost-savings program, continues to be our primary focus as we navigate through the current challenging economic conditions.”
Finally, the bright lights on the Strip obviously have dimmed somewhat of late, and MGM Mirage hasn’t escaped the consequences of fewer people coming to Sin City either.
“While we experienced significant group cancellations early in the quarter and ... a continuation of negative consumer spending trends from the fourth quarter, cancellations have tapered off and we see signs that business levels seem to be stabilizing,” said Jim Murren, MGM Mirage chairman and CEO.
