MGM Mirage’s Earnings Fall 25%

MGM Mirage Inc. reported a more than 25% drop in fourth-quarter earnings Tuesday but still beat analyst expectations thanks to increased gambling at the company’s Las Vegas Strip properties.

For the three months ended Dec. 31, the gambling giant earned $67.9 million, or 47 cents a share, down from $91.7 million, or 62 cents, a year earlier.

Excluding tax adjustments and one-time items, the company said it earned 51 cents a share in the most recent quarter, up from 36 cents a share on a comparable basis the previous year.

Analysts surveyed by Thomson First Call on average had predicted earnings of 44 cents a share.

The company, which owns the Bellagio, Treasure Island, MGM Grand and Mirage hotel-casinos, generated revenue of $1.18 billion in the fourth quarter, up 10% from 2003.

MGM Mirage shares rose $1.98 on Tuesday to close at $73.79 on the New York Stock Exchange.

For the full year, MGM Mirage earned $405.3 million, or $2.80 a share, up from $243.6 million, or $1.61, in 2003.

The company reported revenue of $4.67 billion, up from $4.27 billion.

In June, MGM Mirage agreed to purchase Mandalay Resort Group for $4.8 billion in cash and $2.5 billion in debt.