China operations skew MGM’s overall profits

China operations skew MGM’s overall profits

China operations skew MGM’s overall profits Languid demand in China skewed casino operator MGM’s profits into negative territory, pegged at 4.8% for the current quarter.

According to latest figures, MGM’s income decreased 4.4% to $2.27 billion in the quarter ending in June compared to the same period last year. 

Chinese operations proved to be a drag on the overall revenue as income decreased 19% to $452 million. In contrast, chairman and chief executive Jim Murren said domestic resorts posted the most quarterly profit after eight years as adjusted income grew 12%.

One-time gains from the sale of a Las Vegas property contributed to a 79% jump in profits for the current quarter.

In March, MGM and Infinity World reached a deal to divest their interests in Crystals, a luxury shopping center in Las Vegas to mall operator Simon Property Group and Investco for about $1.1 billion.