MGM Grand reports record earnings, revenues

Thursday, Jan. 29, 1998 | 10:30 a.m.

The company reported earnings per share reached a record $2.33 for the year ending Dec. 31, 1997, an increase of 25 percent.

And net revenues for the 1997 fourth quarter reached an all-time record of $212.6 million, compared with $205.6 million for the same period in 1996.

Operating cash flow (EBITDA) for the quarter ending Dec. 31, 1997, was up 11 percent, to $72.6 million, compared to $65.6 million in the prior year's fourth quarter.

Net income for the quarter was $33.4 million, an increase of 15 percent compared to $29.1 million for the 1996 fourth quarter.

J. Terrence Lanni, MGM chairman and chief executive officer, called 1997 "an exciting period of time" highlighted by the "transforming of the MGM Grand into the city of entertainment."

The company's flagship resort is in the midst of a $700 million renovation and expansion.

In addition, Lanni cited MGM's selection as one of three finalists for proposed casinos in Detroit.

"We are in deep negotiations with the city," Lanni said, and that will be followed by submitting plans for licensing approval by the state.

Lanni said the company has also assembled 34 1/2 of the 35 1/2 acres needed for its planned hotel-casino project in Atlantic City.

"It's exciting to see that property now being cleared," Lanni said. He said efforts were underway to obtain the rest of the land.

Alex Yemenidjian, MGM president and chief operating officer, said the fourth quarter of 1997 was the most profitable in the company's history, and was also the best in terms of concerts at the resort.

The 1998 schedule includes a Feb. 14 concert by Elton John, with the pop star featured the following night in a "star-studded event" marking the opening of Studio 54 at the resort. That event will benefit the AIDS foundation, Yemenidjian said.