MGM CEO: Business negatively impacted by 1 October - FOX5 Vegas - KVVU

MGM CEO: Business negatively impacted by 1 October

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The marquee of MGM Grand and a tower at New York-New York is seen in this undated picture. (File/FOX5) The marquee of MGM Grand and a tower at New York-New York is seen in this undated picture. (File/FOX5)
LAS VEGAS (FOX5/AP) -

MGM is reporting third-quarter net income of $149.1 million, its first quarterly financial report since a deadly mass shooting at its Mandalay Bay property in early October.

Jim Murren, chairman, and CEO of MGM Resorts thanked employees, first responders, and the people who "acted heroically" during 1 October. Murren also said he was grateful for the people "who have stood beside us during the most challenging days." 

Murren acknowledged business in Las Vegas "will be impacted in the near term primarily due to a short-lived uptick in cancellations and a temporary suspension of marketing efforts." He added since the company restarted the efforts booking has rebounded to normal levels. 

He added that 20 percent of room cancellations came from Mandalay Bay. 

Besides the impact of 1 October, Murren said the ongoing transformation of Monte Carlo to MGM Park will continue to disrupt the property. 

The Las Vegas company's profit translates to 26 cents per share, or 33 cents per share when adjusted for non-recurring items. That's in line with Wall Street expectations, according to a survey by Zacks Investment Research.

Murren said the company expects Las Vegas Strip revenues to decrease by a low to a mid-single-digit percentage in the fourth quarter. 

The casino and resort operator posted revenue of $2.83 billion on Wednesday, surpassing Street forecasts of $2.77 billion.

Shares of MGM Resorts International (MGM) have risen 9 percent since the beginning of the year.

Murren added, "we remain confident in the stability of our business and the enduring power of the Las Vegas brand." 

Copyright 2017 KVVU (KVVU Broadcasting Corporation). All rights reserved. The Associated Press contributed to this report.  

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