MGM Mirage reported its first-quarter profit dropped 11% from a year earlier, but the casino company said it saw signs of improvement as Las Vegas weekend hotel occupancy and rates stabilize.
The company's profit was lifted by the sale of its Treasure Island casino in Las Vegas to investor Phil Ruffin for $775 million. But it wasn't enough to offset steep declines in spending by business travelers as corporations continue to cancel conventions and meetings. Earnings fell to $105.2 million, or 38 cents a share, from $118.3 million, or 40 cents a share, a year earlier. Results included a gain of 44 cents a share on the Treasure Island sale.
MGM Mirage, controlled by billionaire investor Kirk Kerkorian, has been in turmoil in recent months as it struggles to pay down more than $14 billion in debt while casino revenue continues to decline in a global consumer recession. The company is currently considering selling off additional properties to raise enough cash to meet looming obligations.
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