In preparation for MGM's Q3 earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.




  • Should poker legislation be enacted, and MGM Resorts would offer, subject to regulatory approval, an online platform that employs leading technologies and processes to ensure the integrity of the game and the security of player accounts and information.


  • Underway this week, the $160 million remodel includes all 3,570 guest rooms and 642 suites in the hotel's main tower and is expected to conclude by September 2012. The initial set of redesigned rooms will be complete by the end of November 2011.



  • “Tunica is now back on track and performing well.”
  • “We reported RevPAR up 10% due to a nice increase in short-term bookings and really strong demand across our portfolio.”
  • “Casino revenues were up despite the low hold that I talked about. Our hold was below our normal range. We didn’t do as well as we have been doing for many quarters internationally; we didn’t do well in April. But we had a really good quarter on our national rated play, second consecutive quarter of growth there."
  • “M life, has been rolling out with great momentum…we launched that on the strip here in January of this year and we’ve seen a nice increase in our active players and in trips in the quarter. Promotional spend, by the way, is down as a percentage of revenue largely due to more targeted marketing, more clever marketing from our perspective. We’re excited about this because next month in September we roll out all the non-gaming elements of M life into our regional properties. And then in the following month in October, we do the same thing here in Las Vegas. That will be the culmination of the full M life launch and with this rollout, we believe we’re going to see nice increases in the non-gaming revenues against even what we’ve been doing thus far this year”
  • “Depreciation and amortization expense will increase by approximately $85 million to $95 million per quarter as a result by the accounting adjustments for the consolidation of Macau”
  • “We are expanding further in Asia with our Hospitality division and they’re bringing the first hotel online literally this year in Sanya in Hainan Island.”
    • “Well on the management side… it doesn’t become substantial until we get into 2013 and ‘14.”


  • “The signs of the recovery here in Las Vegas is consistent; we’re going to see continued improvement as we move into the back half of this year and into 2012”
  • “We continue to expect to spend around $275 million in capital in 2011 which includes room remodel activity at both Bellagio and MGM Grand Las Vegas.  Bellagio’s room remodel program began on June 20th and will finish in time for the December holiday.  We have already turned two floors and the new rooms are receiving great feedback from our customers.  We expect we’ll earn up to an approximate $30 per night rate premium once these new rooms come on- line."
  • “We saw particular strength within the retail segment; or in other words, our FIT and leisure markets. And that led to additional increases in occupancy and in ADR and in fact June was surprisingly strong and was actually our biggest RevPAR growth month in the quarter, up in the low teens.”
  •  “Aria is seeing increased bookings in 2011 and beyond. Residential sales pace continues to be slow. However, we’re having a great deal of success with the residential component of CityCenter. To date, we’ve leased 346 units and we’ll produce total annual lease income of around $8 million.”
    • “On the win per unit slots at Aria, it’s up 9.4%. It’s $206 versus $188 a year ago.”
    • “We actually have 68% of our rooms booked for 2012 which is, as Dan pointed out, ahead of the pace we would normally expect and much better than last year.”
  • “Our booking pace is so far up quite nicely for the summer and really throughout the fall period as well. We expect RevPAR in the third quarter here in the Las Vegas strip to be up around 10%. We’re particularly encouraged in terms of second half of the year on our convention calendar, most notably the months of September and October; they’re exceptionally strong. And in fact, the third quarter convention mix is expected to be up about 300 basis points over last year’s mix.”
  • “We’ve seen zero impact to our call center. We’ve had no change in our cancellation activity at all. We had a very strong – we’re having a very strong August in terms of occupancy, great weekend trends; and I know it’s important to you, but we’re just in the real world living watching people coming to Las Vegas here, there has been no change at all.”
  •  “Our payroll is pretty flat, our expenses are up a little bit in terms of salaries, bonus accruals, the culinary contract. But in terms of any major cost savings beyond what we accomplished early and effectively, I don’t anticipate seeing anything significant. Every year we look to take costs out of our business. We do that in the January-February period as we get into a year; we’ll do that again. But at this point, we’re showing margin growth. We are seeing great occupancy across our portfolios. Our food covers are up; our retail sales in most every venue is up. Slot revenue is up and so I don’t see a need or even an opportunity to cut costs when our revenues are building”


  • “We opened the Platinum Lounge which is part of the main floor operation; that comes on the first phase in August… The upgrade for the in-house VIP customers, that’s now looking unfortunately we’re going to miss National Day holiday but we do have gaming capacity to cover that in late October, early November.”
  • “Philosophically, we have an under-leveraged asset today that’s generating a great return, but we want to grow that company nicely in Macau and Taiwan too if that should be a possibility.  So I would say that there will be an opportunity for both dividends to shareholders and growing in Macau, and I think that the future holds for both of them. But in terms of whether we’re going to do periodic distributions or quarterly distributions, we’re not prepared to discuss it at this time. We need to discuss that with our Board.”

Cartoon of the Day: 'Biggest Tax Cut Ever'

President Donald Trump's economic team unveiled what he called last week, "the biggest tax cut we’ve ever had.” Before you get too excited about that hang on a sec. "Trump Tax Reform ain’t gettin’ done anytime soon," Hedgeye CEO Keith McCullough wrote in today's Early Look.

read more

Neurofinance: The Psychology Behind When To Sell A Bull Market

"Most momentum investors stay invested too long, under-reacting and holding tight after truly bad news finally arrives to break the trend," writes MarketPsych's Richard Peterson.

read more

Energy Stocks: Time to Buy the Dip? | $XLE

What the heck is happening in the Energy sector (XLE)? Energy stocks have trailed the S&P 500 by a whopping 15% in 2017. Before you buy the dip, here's what you need to know.

read more

Cartoon of the Day: Hard-Headed Bears

How's this for "hard data"? So far, 107 of 497 S&P 500 companies have reported aggregate sales and earnings growth of 4.4% and 13.2% respectively.

read more

Premium insight

McCullough [Uncensored]: When People Say ‘Everyone is Bullish, That’s Bulls@#t’

“You wonder why the performance of the hedge fund indices is so horrendous,” says Hedgeye CEO Keith McCullough, “they’re all doing the same thing, after the market moves. You shouldn’t be paid for that.”

read more

SECTOR SPOTLIGHT Replay | Healthcare Analyst Tom Tobin Today at 2:30PM ET

Tune in to this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

read more

Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

read more

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more