|
Mirage posts higher 4Q
|
 |
January 24, 2000: 2:10 p.m. ET
Analysts cite lagging profits at Beau Rivage casino for sluggish quarter
|
NEW YORK (CNNfn) - Mirage Resorts Monday posted fourth-quarter earnings that exceeded Wall Street expectations, but lagging revenue at a Mississippi casino took a toll on company performance.
Overall casino winnings contributed to the slightly higher-than-expected earnings, but lackluster revenue from the Beau Rivage resort in Biloxi, Miss., held the company back from a stronger quarter, analysts said.
Mirage (MIR), the world's leading operator of casino-based resorts, including The Mirage and Treasure Island, posted fourth-quarter earnings of $41.7 million, or 21 cents a diluted share excluding one-time items, a 5 percent increase over the same period a year ago.
The company's net income for the year was $110.4 million, a $24.4 million increase over the same period a year ago.
The number is a penny more than estimates by analysts surveyed at First Call, a company that tracks such data. But some analysts attributed the performance to table winnings and beating a few high rollers. Accounting for those items, earnings were closer to 19 cents a share, said Jason Ader, an analyst with Bear Stearns.
On Friday, Mirage competitor MGM Grand (MGG) posted earnings of 71 cents a share, much higher than the 63 cents a share analysts expected, Ader said.
Mirage reported $706.6 million in total revenue for the quarter, an increase of $140.8 million, or 25 percent, over the same period in 1998.
Casino revenue totaled $337.7 million, an increase of $58.3 million, or 21 percent, over the same period in 1998.
Occupancy was 93 percent at an average daily rate of $108.
Damage from Hurricane Georges last fall, coupled with less than expected turnout at the $685 million Beau Rivage resort that opened last March in Biloxi, Miss., dragged the company's earnings down, Ader said.
Joseph V. Coccimiglio, an analyst with Prudential Securities, agreed, but said "table luck" at the Las Vegas based company's casinos there and at its $1.6 billion Bellagio resort in Atlantic City accounted for some of the earnings.
"I think the big thing was the Beau Rivage. That continues to be a major disappointment to the company," Coccimiglio said.
The company also announced Monday plans for a $250 million expansion at Bellagio, which, if approved, would begin this summer and take two years to complete.
The proposal calls for a new hotel tower that would add 1,300 guestrooms, additional meeting and convention facilities, and a new restaurant.
Shares of Mirage were down 1-11/16 at midday to 14-3/16. MGM shares were down 3/16 to 45-3/4. 
|
|
|
|
|
|
Mirage Resorts
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
