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Date and Time in Las Vegas (PST)  

« MGM Mirage on Life Support - 2010 Not a Happy New YearJames "Jimmy" Murren - CEO MGM Mirage, Has A Magic Dream »

MGM Mirage - City Center is Doomed in 2010 to Cannibalism

12/31/09

Permalink 04:14:47 pm, by Bud Email , 288 words   English (US)
Categories: Las Vegas

MGM Mirage - City Center is Doomed in 2010 to Cannibalism

Deutsche Bank analyst Andrew Zarnett estimates Las Vegas Strip's room supply to increase by approximately 15 percent (10,000 new rooms) over the next 12 months in 2010, which started with the opening of CityCenter (5,895 rooms) this month.

"Based on our analysis, we expect same-store Las Vegas revenues to decline by 10 percent and EBITDA to decline by approximately 20 percent as new capacity cannibalizes existing Strip operators."

EBITDA, a profitability measure, means earnings before interest, taxes, depreciation and amortization.

"Despite a bump in visitation to Las Vegas, gaming win fell 10.2 percent in October vs. October 2008 as statewide win of $800.3 million slumped 11.5 percent."

MGM Last 2 Years

In other words, CityCenter's problems may expand well beyond its own walls should the economy NOT improve.

(MGM shareholders should write to Jim Murren to express their gratitude, and the youngsters he hired should be happy they even have a job.)

MGM in 2009

Other MGM Mirage Posts

MGM MIRAGE (NYSE: MGM) - Living on a Prayer in 2010 (Despite "Upgrade")
http://tobuds.com/blogs/blog2.php/2010/01/13/mgm-mirage-nyse-mgm-living-on-a-prayer-i

Casinos Won't Recover - What it Means for MGM Mirage
http://tobuds.com/blogs/blog2.php/2010/01/11/casinos-won-t-recover-what-it-means-for

MGM Mirage on Life Support - 2010 Not a Happy New Year
http://tobuds.com/blogs/blog2.php/2010/01/07/mgm-mirage-on-life-support-2010-not-a-ha

MGM Mirage - City Center is Doomed in 2010 to Cannibalism
http://tobuds.com/blogs/blog2.php/2009/12/31/mgm-mirage-city-center-is-doomed-to-cann

James "Jimmy" Murren - CEO MGM Mirage, Has A Magic Dream
http://tobuds.com/blogs/blog2.php/2009/12/29/james-jimmy-murren-ceo-mgm-mirage-has-a

MGM's Kirk Kerkorian's CEO (Jim Murren) - A Con Artist?
http://tobuds.com/blogs/blog2.php/2009/12/21/james-j-murren-chairman-of-the-board-and

MGM's Mister Kerkorian is a Very Wise Man
http://tobuds.com/blogs/blog2.php/2009/12/21/mgm-s-mister-kerkorian-is-a-very-wise-ma


Also see > CityCenter, Infinity World Development, MGM Mirage, Tracinda, Kerkorian

Source:
http://www.gambling911.com/business/financial/las-vegas-gambling-disasters-2009-123009.html

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