1. Welcome to VegasMessageBoard
    It appears you are visiting our community as a guest.
    In order to view full-size images, participate in discussions, vote in polls, etc, you will need to Log in or Register.

MGM 4th quarter 2016 results not good

Discussion in 'Misc. Vegas Chat' started by caltrinity, Feb 16, 2017.

Thread Status:
Not open for further replies.
  1. caltrinity

    caltrinity Tourist

    Joined:
    Jan 5, 2017
    Messages:
    79
    Trips to Las Vegas:
    365
    • Informative Informative x 2
  2. Jidery

    Jidery Low-Roller

    Joined:
    Jan 7, 2017
    Messages:
    420
    Trips to Las Vegas:
    5
    If anything, missing revenue targets will cause more nickle and diming. I don't expect major changes from this.
     
    • Agree Agree x 3
  3. Drewm1972

    Drewm1972 VIP Whale

    Joined:
    Jul 3, 2016
    Messages:
    2,791
    Trips to Las Vegas:
    20
    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%
     
  4. nostresshere

    nostresshere Mr. Anti Debit Card

    Joined:
    May 4, 2009
    Messages:
    18,419
    Location:
    TN
    Trips to Las Vegas:
    25
    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.
     
    • Agree Agree x 1
  5. caltrinity

    caltrinity Tourist

    Joined:
    Jan 5, 2017
    Messages:
    79
    Trips to Las Vegas:
    365
    another thing to realize is that after the implementation of charged parking... they have not done any better financially
     
  6. nostresshere

    nostresshere Mr. Anti Debit Card

    Joined:
    May 4, 2009
    Messages:
    18,419
    Location:
    TN
    Trips to Las Vegas:
    25
    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?
     
  7. Richard Alpert

    Richard Alpert LOST

    Joined:
    Jul 22, 2015
    Messages:
    8,748
    Location:
    The Island
    Trips to Las Vegas:
    11
    On a positive note, parking is still free on myVegas!
    Although the myStrip map is not the same as the real deal!

    RICHARD
     
    Return of the Alperts!
    • Like Like x 1
  8. vegasdev

    vegasdev VIP Whale

    Joined:
    Sep 20, 2016
    Messages:
    3,881
    Trips to Las Vegas:
    55
    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.
     
  9. caltrinity

    caltrinity Tourist

    Joined:
    Jan 5, 2017
    Messages:
    79
    Trips to Las Vegas:
    365
    ***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.
     
  10. leo21

    leo21 VIP Whale

    Joined:
    Jan 9, 2010
    Messages:
    6,383
    Location:
    Chicago South Suburbs
    Trips to Las Vegas:
    25
    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.
     
    • Agree Agree x 1
  11. hammie

    hammie VIP Whale

    Joined:
    Sep 18, 2006
    Messages:
    5,581
    Trips to Las Vegas:
    8
    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
     
Thread Status:
Not open for further replies.