MGM Mirage Says Earnings Are Far Less Than Expected

MGM Mirage Inc., owner of the Bellagio, Mirage and MGM Grand casinos in Las Vegas, said third-quarter earnings were “substantially” less than expected because customer traffic fell after last month’s terrorist attacks.

MGM Mirage has cut costs by telling as many as 6,000 of the 37,300 who normally work full time at its Las Vegas hotels not to come in on some days, said spokesman Alan Feldman. Hotel rates have been cut as much as 60% to lure guests, he said. The Las Vegas-based company was expected to earn 37 cents a share, according to a poll of analysts by Thomson Financial/First Call.

Casinos in Las Vegas, which gets half its visitors via air travel, have suffered from lower visitation and canceled meetings following the Sept. 11 attacks. MGM Mirage gets about 70% of its cash flow from its Las Vegas casinos, which also include the Golden Nugget and Treasure Island.

When guests will return to Las Vegas “depends on what happens with our government, what happens with consumer psychology,” said analyst Dennis Forst of McDonald Investments Inc. “I don’t think it will be as bad going forward as it was the last three weeks.”

Forst said to counteract the loss of business from travelers unwilling to take long flights following the terrorist hijackings, MGM Mirage and other Las Vegas companies can market more to gamblers in neighboring states such as California.

MGM Mirage shares fell $1.08 to close at $21.40 on the New York Stock Exchange and have fallen 24% since the attacks. The company will report earnings Oct. 30.