MGM 4th quarter 2016 results not good

http://www.cnbc.com/2017/02/16/mgm-stock-sinks-as-fourth-quarter-results-disappoint-on-vegas-weakness.html

hopefully they will bring back free parking?!?! lol wishful thinking....

Here's another interpretation from another news source.........

http://www.reviewjournal.com/business/casinos-gaming/mgm-reports-improved-fourth-quarter-earnings-rosy-outlook-2017

 

If anything, missing revenue targets will cause more nickle and diming. I don't expect major changes from this.

 

Thanks for sharing.... if Mr Kirk Kerkorian knew all these parking fee nonsense is going on he would probably roll over his grave... he was against lot of corp ideas;such as cutting back on comps etc. but they are not going to change they will keep cutting back on cost and try to find more ways to drive revenues up!

I agree w you 100%

 

The more they raise income by raising rates, adding fees, etc, the less people will some spend money. The accountants will continue to drive them into the ground. Just business folks.

 

another thing to realize is that after the implementation of charged parking... they have not done any better financially

 

I was thinking parking would not have been that big, but just realized it started in mid summer, so would have been in full effect during the 4th quarter. Hard to say if that was a major factor, but you never know. Looking at what financials I would find online, I did not see parking revenue broken out. Probably will not be?

 

On a positive note, parking is still free on myVegas!
Although the myStrip map is not the same as the real deal!

RICHARD

 

sooner or later all of the casinos do everything they can to alienate their best customers. they all do it. it is sad. I cant recall the last time that I have been in an MGM joint. I stay and play downtown or off strip.

 

***This is written in no way to demean or offend anyone at all***

The bottom line for big corporate business is money and profitability. If you are not profitable to the company (however they define profitability), then they don't want your business. It makes sense from a business point of view: it saves room in the casinos and comp system to cater to others who are more profitable. After all the less profitable people are weeded out.... the more profitable customers can then have more wiggle room on the casino floor, better parking spaces in the self parking garage (I noticed that MGM self parking is emptier)... etc.

The less profitable people will feel shafted and will naturally bring their business somewhere else where the threshold for profitability is lower... i.e. downtown.

BTW... I believe myself to be one of those who is not profitable to MGM.

 

I'm sorry but do you have any clue how much debt MGM owes? They are still paying off City Center and are taking on more debt with their new projects on the East Coast. Maybe I'm missing something but I didn't get the impression that they can afford to be that picky on their customers. My take is that they are too reliant on easy money customers like conventioneers at a time when the big shows aren't completely satisfied with Vegas and may want to take their business to another market. Investors notice when the casinos and hotel beds aren't full and they don't see any positives in better parking access.

 

I think MGM sold Crystals to mall operator Simon Properties and used some of those funds to pay for Boyd's interest in the Borgata.

Here is a link to an article written by a former casino executive who is now a consultant and contributor to Seeking Alpha. He feels that the stock is priced well right now and that MGM had good year over year numbers. National Harbor is doing well, Beau Rivage is up also. He feels that Macau will be firming up this year and that cash flow will be able to handle the debt load.
http://seekingalpha.com/article/4046959-mgm-delivered-goods-solid-2016-performance?uprof=45&isDirectRoadblock=false