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MGM Resorts International tumbled the most in more than two years after the company lowered its projected revenue growth due to sluggish business at Mandalay Bay and other Las Vegas properties.
Room revenue will be up 1 percent to 3 percent this year, management of Las Vegas-based MGM Resorts said on a conference call Thursday. In February, the company projected 2 percent to 4 percent.
Chief Executive Officer James Murren said Mandalay Bay isn’t recovering as quickly as expected from the Oct. 1 mass shooting in Las Vegas, the worst in U.S. history. Disruption due to remodeling at the Monte Carlo resort, a delayed boxing match and weaker April results are taking a toll on the outlook, he said.
MGM fell as much as 10 percent, the worst intraday decline since January 2016. The shares had been up 5.8 percent this year through Wednesday.
Separately, the company announced the sale of the Mandarin Oriental hotel on the Strip and an opening date of Aug. 24 for its new casino in Springfield, Massachusetts. On the call, Murren said the company was committed to Springfield and was “not likely” to buy Wynn Resorts Ltd.’s still-under construction resort near Boston.