Gaming Loyalty Programs - Guardian: "MGM Mirage delays projects as profit falls 67 pct"

NEW YORK/LOS ANGELES, Oct 29 (Reuters) - MGM Mirage, the world's second-largest casino operator, said on Wednesday it will delay projects in Atlantic City and Las Vegas amid the global credit crisis and said third-quarter profit fell 67 percent as business slumped on the Strip.

MGM's shares, which were over $95 a year ago, rose nearly 24 percent on Wednesday morning to $12.80.

"The stock has been priced for the worst case scenario, so anything better than that is going to get investors excited," said Sumit Desai, analyst at Morningstar.

In addition, Thomson Reuters publication IFR reported on Wednesday that MGM plans to sell an undisclosed amount of five- year notes secured by its New York-New York casino hotel in Las Vegas.

"MGM missed with downside revenue and margin in Vegas operations ... but investors may have been expecting worse and headlines about a possible debt deal ease balance sheet concerns," Thomas Weisel analyst Jake Fuller said in a research note.

The casino company, a major holding of billionaire Kirk Kerkorian's Tracinda Corp, also said it postponed development work for its MGM Grand Atlantic City project, as well as for a planned Las Vegas Strip joint venture with Kerzner International and Istithmar...

http://www.guardian.co.uk/business/feedarticle/7952351

What is under development in AC now?

I know Pinnacle is building on the Sands old property-doesn't seem like much is happening there right now.

I also saw a ton of cranes building something towards the Taj end of the boardwalk. What is this construction?

What is under development in AC now?

You mean what was under development. ;)

MGM-Atlantic City (http://www.msnbc.msn.com/id/21223195/)

from October 2007

ATLANTIC CITY, N.J. - MGM Mirage Inc. plans to build a mega-casino resort worth up to $5 billion that will dwarf anything Atlantic City has seen before, the company said Wednesday.

The move is part of an ongoing gamble by casino operators to polish Atlantic City's image and attract upscale customers who want to do more than just bet money.

The project, which will be called MGM Grand Atlantic City, will cost between $4.5 billion and $5 billion, not including the land value and associated expenses, the company said in a statement.

It will be built on a 72-acre site at Renaissance Pointe that MGM owns, next to the Borgata Hotel Casino & Spa, which the company co-owns with Boyd Gaming Corp.

I know Pinnacle is building on the Sands old property-doesn't seem like much is happening there right now.

Yep, ON HOLD AFAIK.

I also saw a ton of cranes building something towards the Taj end of the boardwalk. What is this construction?

That would be the Revel development next to the Showboat (also, Taj is completing their new tower).

AFAIK, this development is still on, haven't seen much mention of it over the past few months.

details (http://www.revelentertainment.com/revelpress_cafrapermit.html) and details (http://news.777.com/2007-08/revel-entertainments-2-billion-plans)

That would be the Revel development next to the Showboat (also, Taj is completing their new tower).

AFAIK, this development is still on, haven't seen much mention of it over the past few months.

details (http://www.revelentertainment.com/revelpress_cafrapermit.html) and details (http://news.777.com/2007-08/revel-entertainments-2-billion-plans)

Thanks, this was the one I didn't know about.

The new Taj tower is done, I think. Haven't been in that 'hood in a while.

Revel is still ongoing...all 5,000 rooms of it, last I heard. I'm still waiting to see where the companies think they're going to get the people to run these buildings.