Casinos  

STAFF AND WIRE REPORTS

Mirage plans to push ahead

LAS VEGAS --

The chief executive of MGM Mirage, the parent company of Biloxi's Beau Rivage, said Tuesday he planned to push ahead with new projects even after construction costs and an economy that is discouraging spending sent first-quarter profit tumbling 30 percent.

The casino company laid off more than 400 midlevel employees in April, with 100 of the layoffs in Biloxi and Tunica.

CEO Terry Lanni said MGM Mirage might consider splitting its hotel and gambling operations down the road to boost the value of shares. Shareholders in non-gambling hotel companies pay less per dollar of earnings, Lanni said.

Lanni also said MGM planned to increase revenue through marketing and would try to manage costs better.

The Las Vegas-based company said earnings dropped to $118.3 million, or 40 cents per share, compared with $168.2 million, or 57 cents per share, in the same quarter a year ago.

Revenue for the world's second-largest casino company slipped 3 percent to $1.88 billion.

With consumer spending down, the company reported single-digit decreases in gambling, room, and food and drink revenue for the quarter. Table games volume decreased 4 percent and slot machine revenue decreased 1 percent, the company said.

Room revenues decreased 6 percent.

Robin Farley of UBS Investment Research said Las Vegas tourists are spending less per visit.

MGM Mirage officials said they are pushing ahead with the $8.1 billion complex on the Las Vegas Strip expected to open in November 2009. The CityCenter project - with six high-rise towers and 6,300 rooms - is a partnership with Dubai's government investment fund, Dubai World.

"If you don't move ahead with these projects, you will end up being in a very difficult position when the economy does turn around," Lanni said.