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MGM Resorts CEO Jim Murren on the company’s outlook and efforts to expand into Massachusetts.
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OK you know if you reversed it to yesterday all it took was one single report to bring casino -- Stocks down worries that gambling Mecca but Powell might not be pulling in the revenue which -- in the month of February we're getting the real story.
From the world's largest casino operator on the Las Vegas Strip with a big toe hold in that big Mecca -- MGM resorts international.
They -- the Bellagio MGM grand the mirage and Mandalay -- -- reported fourth quarter earnings this morning it's not earnings it's a loss widened the loss to two dollars and fifty cents per share but the stock.
At least before the big move as you -- considered a chart was moving higher.
And then as you see where the whole market -- off a cliff so did and GM's stock moving lower so what's the Campbell investor should make here.
X today -- -- today just by -- today earthbound box that.
MGM resorts international chairman and CEO good to see -- -- Thank you for having me of course you know and and let's let's put aside because you were up before the market took a big dip here in these last -- wanna say now about.
Seventeen minutes on counting -- moment by moment but let's talk first about.
What's happening and get it out of the get it out of the picture for the moment as as to why we sought that the wider than expected.
Loss for your earnings this -- out.
What a loss reserve as a result of non cash charges because we refinanced our debt last year and we wrote down some land so.
That really wasn't what the analysts looked at -- focused on our operating trends.
Which were above consensus both in Las Vegas.
And around it could be country and that's why.
The stock was up before this out markets selloffs -- do you expect to see stronger numbers going forward because this might have been sort of one of those one time situations.
You know I do the economy is here in US for our business is getting better Las Vegas is certainly getting better were up through great start we had it unbelievably strong Super Bowl weekend.
We have a great Chinese New Year's period going on right now this is the year the snake.
And we're very.
We're we're very happy about that right now.
And we're seen profit improvement.
In all of our properties both here in the US and certainly -- -- -- we just finished another record year.
A record year in the -- I'll get to that Conseco wanted to stick with Las Vegas for the moment because everybody is wondering certainly analysts.
Are we -- -- with the attempt to recover are we through the recovery are still in the process.
You know I think we can close a chapter on that the recovering from the recession and now move on into the fact that we're firmly.
Under way with growth again.
My competitors are seen it.
We are seen -- we -- having a good first quarter so far we have a tremendous calendar for the second quarter.
I predicted that profits will be up in Las Vegas for everybody.
I think we'll do better than most here given our dominant position.
And I would I would have to say you're gonna see higher revenues.
Improve margins particularly Las Vegas for us higher profits and I'd say yes fortunately.
The scars of the recession.
You know I still have them.
We're doing much better today.
I think we're all still a little bruised if not -- but -- I think Steve when it's thrilled that you're speaking -- Just about everybody and saying that it's looking better now let's get to -- There was word that the -- revenue was not what it should be for the current numbers and that the revenue disappointed coming in under two billion.
For the latest month what do you say -- that.
Well our -- was down year over year -- actually are by names were above what we expected them to be both in terms of our mass market.
And our slot -- we're still the market leader in slot revenue in Macau.
As -- said.
My comments in Las Vegas at the same in Macau -- Chinese new years is is very favorable.
For us I think for the market in the -- And we're off to a good start in the first quarter there.
Now Massachusetts.
This -- every night -- of course Mohegan Sun is is is around that region but suddenly Massachusetts everybody wants and I believe -- three gaming licenses up for grabs.
Why do you want one so badly.
Well we're bidding for western Massachusetts in the city of Springfield city that as you know it's.
Has really been hurt badly over many many decades and it's appealing to me from an Urban Renewal project.
From a commercial.
Opportunity we have hundreds of thousands of -- life for MGM resorts customers that live.
In New York Connecticut and Massachusetts that we know we can touch if we had to resort.
In western mass and I look at that opportunity similar -- -- MGM grand Detroit we invested 800 million dollars in Detroit.
Last year we made a 165 million dollars -- cash flow.
Those are the kinds of returns if you build a beautiful integrated resort that has staying power I think you can accomplish in markets like western mass.
You took yourself out of New Jersey awhile back we really want to get back in and is that because it seems like and we've covered this extensively.
That the online gaming business might eventually get here and you -- -- have a -- one adopts.
Well I think we will have a toehold when it does in fact we have very active efforts under way.
Both if it was done at a federal level -- -- state by state level.
We do want to get back into New Jersey we never wanted to -- we just disagree.
With the DGE opinion that asks us to make a decision between New Jersey in Macau.
I don't think that's a decision we should have to make I think we should be -- good operator -- be welcome in both Macau.
And New Jersey.
That is our hope and that's my expectation once we go through the licensing process.
But to they have saltwater taffy and corn that's -- Well it's closer to my mom who lives in Connecticut over that is one reason why wanna get back.
Connecticut where Mohegan Sun is but that the parent of that which is Palmer wants to get in the Massachusetts that we're watching all of the developments thank you -- for coming first on Fox Business.
Thank you very much timber and his MGM resorts chairman and CEO closing -- over.
