MGM Struggles To Erase Shortfalls, Hudson Securities Reports

MGM Resorts International MGM reported 4Q10 reported company EBITDA of $252 million, versus StreetAccount consensus of $289 million, Hudson Securities reports. “In Las Vegas, MGM reported EBITDA from its wholly-owned properties of $217 million, which was $20 million below consensus,” Hudson Securities writes. “The bright spot in the numbers was Macau, which reported adjusted EBITDA of $58.4 million that was $22.4 million ahead of consensus. Nonetheless, it could not erase the shortfalls elsewhere. In the 4Q, gaming revenue was down 3%, with slots +2% and tables -13%. “Management noted in the release that they were encouraged by early 2011 business activity levels, including a stronger convention mix. That being said, it concluded that discussion by saying the company is positioned ‘to have a better year than last year.' “In our view, that is not a terribly robust outlook considering what a challenge 2010 was — a year when MGM produced $930 million of EBITDA versus its interest expense of $1.1 billion. Our suspicion is that the Street was expecting more than ‘better than last year' out of 2011." MGM Resorts International currently traders at $15.15.