Mandalay Bay Struggles for Occupancy Post-Vegas Shooting, Admits MGM, Because It Revises Revenue Forecast
MGM Resorts International's Mandalay Bay is taking longer than expected to recoup through the Las Vegas shooting, the company's CEO Jim Murren told analysts during a Thursday seminar call to discuss Q1 earnings.
MGM CEO Jim Murren admitted Thursday that Mandalay Bay is using longer than expected to recover from the awful events of October 1, 2017. The operator's stock plummeted by 10 % following the revised earnings forecast.
Murren said the home's income declined by 6.3 % during Q1 to $245 million, while occupancy had been just 85 percent, a 6 percent decline through the corresponding period the previous year and the lowest MGM property on the Strip after unfashionable Circus Circus.
This, and the interruption brought on by the $550 million revamp of the Monte Carlo, caused MGM management to lower its projected revenue growth. The stock market reacted badly to the news headlines, with ten percent or some $1.7 billion being wiped off the organization's market capitalization by the end of trading on Thursday. It's the worst stock hit MGM has taken in over two years.
On October 1, 2017, 64-year-old Stephen Paddock exposed fire from his 32nd-floor room in the Mandalay Bay on a country music concert on the Las Vegas Strip below.
The rich estate that is real and habitual gambler killed 58 people and injured over 800 more before dying from a self-inflicted gunshot injury to the head.