MGM MGM Resorts International

MGM Resorts International said its first-quarter earnings fell 61% amid continued weakness in its China business and a tax provision.

In the three-month period ended in March, MGM China's revenue decreased 26% to $469 million, as VIP table games revenue slumped 41% and main floor table games revenue dropped 8%.

The decline was partly offset by MGM's wholly owned domestic resorts, which include properties on the Las Vegas Strip and others throughout the U.S. The segment's revenue rose 3%. Revenue per available room, a key measure of performance for the lodging industry, improved 8% at the company's Las Vegas Strip resorts, as occupancy rates and average daily room rates both strengthened.

Chairman and Chief Executive Jim Murren in prepared remarks Thursday also touted the company's efforts to improve its balance sheet, including last month's initial offering of MGM Growth Properties LLC.

The real-estate investment trust, which invests in properties such as casino resorts, raised $1.05 billion in its initial public offering and sold 50 million shares. MGM Resorts will remain a majority owner.

Over all, MGM reported a profit of $66.8 million, or 12 cents a share, down from $169.8 million, or 33 cents a share, a year earlier.

The latest period included a tax provision of $21.3 million, while the year-earlier period included a tax benefit of $56.3 million. The year-earlier quarter also included a per-share gain of 9 cents related to CityCenter' resolution of construction litigation and remaining settlements.

Revenue decreased 5.3% to $2.21 billion.

Analysts polled by Thomson Reuters expected per-share profit of 11 cents and revenue of $2.28 billion.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

May 05, 2016 10:15 ET (14:15 GMT)

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