Posted By: Mark Thatcher

Thu Nov 2, 11:00 AM ET

LAS VEGAS - MGM Mirage Inc., the world's second-largest casino company, said Thursday its third-quarter profit climbed 68 percent, powered by increased revenue from slot machines and better operating margins.
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Net income rose to $156.3 million, or 54 cents per share, in the July-September period from $93.2 million, or 31 cents per share, in the third quarter a year ago.

Revenue rose 5 percent to $1.90 billion from $1.81 billion last year.

Analysts expected, on average, earnings of 41 cents per share on revenue of $1.83 billion, according to Thomson Financial.

MGM shares fell 38 cents to $42.32 in morning trading on the New York Stock Exchange, where they have traded in an annual range of $34.20 to $46.15.

Revenue on the Las Vegas Strip improved to $1.54 billion from $1.45 billion. The company said it also posted a 6 percent gain in revenue per available room on the Las Vegas Strip to $135 from $128.

Casino revenue rose 5 percent, helped by double-digit gains in slot machine revenue at several resorts including Bellagio, MGM Grand Las Vegas, Mandalay Bay, TI, MGM Grand Detroit and Gold Strike Tunica, the company said.

MGM said it recorded a $27 million profit from sales of condo-hotel units from its Signature development at MGM Grand Las Vegas during the quarter, and looked forward to reaping $70 million to $80 million from the project in the next two quarters.

The rebuilt Beau Rivage casino in Biloxi, Miss., which was open just 33 days in the quarter, contributed $16 million to the bottom line, compared to $12 million in the period a year ago, when it was open two months before suffering hurricane damage.

MGM Mirage is second only to Harrahs Entertainment Inc. in the casino business.

After the markets closed Wednesday, another casino rival, Las Vegas Sands Corp. run by billionaire Sheldon Adelson, reported a 21 percent rise in net income for the third quarter, bolstered by another record period at its casino in the Chinese gambling enclave of Macau. It owns The Venetian on the Las Vegas Strip and is also building the $1.8 billion Palazzo casino resort nearby.

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On the Net:

MGM Mirage Inc., http://www.mgmmirage.com

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