MGM profits sink into red
7th May, 2008
MGM Mirage has become the latest casino gambling company to report falling profits during the current economic downturn.
The casino company issued its first-quarter report yesterday (May 6th), revealing a 30 per cent year-on-year fall in profits.
January's fire at its flagship Monte Carlo hotel in Las Vegas along with surging resort set-up costs are believed to have played a role - but pundits say the economy was the biggest influence.
"This quarter was challenging, and it was clearly impacted by the economy," company chief executive Terry Lanni told investors in a conference call. "Our job is to manage within the context to maximise profitability in what will surely be a challenging year."
Revenues for the world's second-largest casino company had slipped by just three percent over the same period in 2006/07.
The company revealed it was axing over 400 mid-level corporate jobs in April and analysts say further cutbacks appear likely.
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