Market Overview

MGM CEO: 'We're Doing Better, Thank God'

MGM CEO: 'We're Doing Better, Thank God'
  • Shares of MGM Resorts International (NYSE: MGM) lost nearly 18 percent year-to-date and 20 percent from a year ago.
  • MGM's CEO Jim Murren said during the Global Gaming Expo that his company is "doing better."
  • Investors and traders aren't showing much faith in the executive's comments as the stock was lower by nearly 5 percent on Tuesday.

MGM's CEO Jim Murren spoke to CNBC during the Global Gaming Expo in Las Vegas. The executive wanted to highlight one major selling point, and said: "We're doing better, thank God."

Struggling In Macau

Gaming investors are well familiar with the ongoing struggles in the once all-powerful Macau market. MGM is no exception with the company's revenue down as much as 40 percent in the region.

"We're really struggling in Macau," Murren said. "I do think in 2016, revenues in the market will be up … but its been ugly this year."

Looking forward to next year, MGM will be opening a new property in Cotai, and the company has already made changes to the layout to cater more towards the "mass market" instead of the high-roller market which has been hard hit as of late.

Murren also noted that MGM may have an advantage over its peers in the region, especially following his meeting with China's President Xi Jinping. The executive commented that he left the meeting with more confidence in the current environment, stating that it is now "better than it's been in my 18 years."

Murren: ‘I've Got Advisors On Advisors'

Shares of MGM spiked significantly higher after Land And Buildings, an activist investment firm with a focus on real estate assets, has demanded the company take steps to unlock value for shareholders by maximizing its real estate assets.

Land And Buildings acquired a 0.8 percent stake in the company, but Murren has already stated that his management team has previously explored the possibility but never converted to a REIT structure.

Commenting on MGM's future plans to transform to an REIT structure, Murren said that he has "advisors on advisors." He also said that the REIT proposal came "at the wrong time" and "it was the wrong format."

"I believe that there will be more REITs in the gaming space," he said without offering any specific details.

Posted-In: CNBC Global Gaming Expo Jim Murren Land and Buildings MacauTravel Media General Best of Benzinga


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