MGM’s half-full glass

Today it was MGM Resorts International‘s turn to do the “We didn’t lose as much money as last year” thing. The size of the decrease, at least, was impressive and MGM China produced its best numbers ever. The company’s performance inspired Deutsche Bank analyst Carlo Santarelli to quote John Malkovich in Rounders: “He beat me, fair and square. Pay that man his money.” MGM beat Wall Street‘s metrics in every important category, except for performance in Detroit, Tunica and Biloxi. On the Las Vegas Strip, 2Q13 gambling revenues were up 7% and room monies increased 5%. And Jim Murren will be a very old man when CityCenter (3% ROI) finally pays off.

“Overall, we think these results are better than some of the most recent buy-side expectations going into today (lots of nervousness, in our view, following the public release of LV Strip June market wide data last week, where the month exhibited a 10% gaming revenue decline),” summarized J.P. Morgan analyst Joseph Greff, who eschewed any Malkovich references. MGM, he said, “could be taking share from a competitor on the Strip that is undergoing renovation disruption at a few of its properties” … meaning Caesars Entertainment, of course. Why not just come out and say it, man?

In case you’re wondering where certain properties rank in the MGM revenue pantheon, for last quarter it was as follows:

1) MGM Grand Paradise, $835M; 2) Bellagio, $303M; 3) MGM Grand, $255M; 4) Mandalay Bay, $205M; 5) The Mirage, $142M; 6) Luxor, $83M; 7) Excalibur, $70; 8. New York-New York, 9) $69M; Monte Carlo, $69M; 10) Circus Circus, $51M.

You can see from those numbers why Monte Carlo and NY-NY were deemed in need of a facelift (outgrossed by Excalibur!). Beau Rivage should probably be in the #6 or #7 spot but MGM doesn’t bust out discrete numbers for its Mississippi operations.