For Q2, the casinos saw sales decline 0.2 percent to just under $350 million. Revenue at market-leader MGM Resorts International MGM was down 0.7 percent to $149.9 million in the second quarter, while MotorCity sales fell 0.1 percent to $117.3 million. Greektown posted a gain of 0.4 percent to $82.3 million.
June sales figures were also released for the three casinos, posting an aggregate decline of 1.2 percent compared to last year's comparable June numbers. MGM was the only casino to post an increase for the month, adding 0.5 percent to $47.6 million, while MotorCity fell 3 percent to $35.9 million and Greektown lost 1.7 percent to $25.2 million. June 2016 market shares were as follows: MGM commanded a 44 percent market share; MotorCity, 33 percent; Greektown, 23 percent.
On Tuesday, MGM shares were trading down around 1 percent intra-day to just above $23. Wall Street analysts expect the company to post a very slight annual revenue decrease to $9.18 billion from $9.19 billion last year.
Casinos are highly cyclical businesses whose performance is dictated in large part by changes in the economy. In light of this, the current sales data does not support a particularly bullish view of current economic conditions. On the positive side, however, Wall Street is looking for a big jump in MGM's revenue next year, predicting a 21.30 percent climb to $11.14 billion.
Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
