Reporting on first quarter 2008 results, MGM Mirage yesterday stated that it had experienced low single digit percentage decreases in both gaming and non-gaming revenues on a quarter-to-quarter basis. Net revenue decreased 2% to US$1.9 billion; casino revenue decreased 3%. Lower table games volume at the company’s Las Vegas Strip resorts was the main cause of the fall in casino revenues.

The fire that caused the closure of MGM Mirage’s Monte Carlo in Las Vegas from 25 January through 14 February this year accounted for a US$14 million earned property EBITDA compared to US$34 million in the prior year quarter. Approximately 20% of rooms and suites remained out of service at quarter end. Overall profits for the company slumped 30% in the first quarter, with net income falling to US$118.3 million from US$168.2 million a year ago.

"Our business should be evaluated in the context of the state of the economy," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "The gaming industry and our company have seen considerable growth within the last several years, and even with near-term weaker economic conditions our resorts are still attracting premium customers and generating tremendous cash flow. We are focused on our fundamental strategies which have consistently produced positive results."

Several of the Company's Las Vegas Strip resorts reported increases in slots revenue including Bellagio, The Mirage, and Mandalay Bay, which all reported mid-single digit percentage increases. Excluding Monte Carlo, Las Vegas Strip slots revenue was consistent with the prior year. Additionally, slots revenue at MGM Grand Detroit increased 9% as a result of increased capacity in the permanent casino.

Food and beverage revenue decreased 4% as the Company's restaurants and nightclubs were also impacted by the decrease in occupancy and the slowdown in consumer spending. Entertainment revenues held steady, despite fewer concerts and sporting events, led by strength in the Company's Cirque du Soleil production shows.

MGM Grand Macau, of which the Company owns 50%, was open for its first full quarter of operations and produced Property EBITDA of $43 million and operating income of $23 million. The Company recognized its share of MGM Grand Macau's results as follows: $10 million of income in the "Income from unconsolidated affiliates" line, and $5 million of expense in the "Non-operating items from unconsolidated affiliates" line for the Company's share of MGM Grand Macau's interest expense and other non-operating expenses.

"We must continue to concentrate on our customers and the celebrated experiences we provide at our resorts," said Jim Murren, MGM MIRAGE President and Chief Operating Officer. "Additionally, we have always been committed to operating our resorts at maximum efficiency. Over the past several months we have been implementing various new revenue enhancement and cost savings initiatives. We will continue to make substantial long-term investments in our people and resorts." (E-05.07.08)

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