As the crumbling national economy drives down revenue throughout the bulk of Las Vegas casinos, MGM Mirage has been hit especially hard. MGM recently reported that their third quarter net income dropped down 67%. Room vacancies are rising and the healthy revenue they receive from their gambling operations have sank to dramatic lows.

MGM Mirage has experiences a drop in income that amounts to 22 cents less per share or $61.3 MILLION. That is substantially less than what it was a year ago. Back then the net income was reported as $183.9 million which is the equivalent to 62 cents per share. Overall net revenue sank by 5.9% to a pathetic $1.79 billion.

Revenue per room at Luxor, Circus Circus and the Bellagio have also decreased by 10%. Occupancy on the strip, which is normally steady and strong, has come down 2% from 97% down to 95% within the past year. Room rates have shrunk too in hopes of attracting more visitors who are there to have fun despite the nation’s need to pinch their pennies. Room rates have dropped down from $147 per night to $135. Despite these measures, numbers continue in a downward slope.

Every operation that normally generates decent revenue for sin city has experienced a sharp decline including everything from slot machines to table betting to food and beverage sales. Even entertainment revenue has sunk. Obviously these poor numbers are due to the fact that fewer and fewer people are coming to Las Vegas because they have less and less disposable income to throw at the city.

Tags: Las Vegas Casinos, MGM Mirage

This entry was posted on Wednesday, November 12th, 2008 at 8:27 am and is filed under Las Vegas Casinos. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.