Published Tuesday, June 15, 2010 | 10:40 a.m.
Updated Tuesday, June 15, 2010 | 1:41 p.m.
Steve Wynn on the name change:
- "Mirage was a name associated with a very conservatively run and very successful company, not one with the kinds of overextended issues they face today. MGM got themselves into that, so I think that ought to be their name."
MGM Mirage received approval from shareholders to change the company name to MGM Resorts International at Tuesday's annual shareholders meeting at CityCenter. The change is effective immediately.
Company Chairman and Chief Executive Jim Murren said the name change is better aligned with the company’s current strategy to expand the brand globally.
“We believe that this change honors our rich entertainment heritage, better represents the growing global presence of our company and positions us to move forward under a united brand, strategy and common vision,” Murren said to a ballroom of shareholders Tuesday morning.
The company formed a subsidiary, MGM Mirage Hospitality, in May 2007 to explore opportunities in international markets. The subsidiary will now be known as MGM Resorts Hospitality.
MGM Grand Macau, which opened in December 2007, was the company’s first international venture. The hotel-casino is a 50-50 partnership with Pansy Ho. The casino operator is acquiring the management of hotel developments in Vietnam, Dubai and Egypt through the subsidiary. The business plan calls for MGM Resorts Hospitality to acquire the management of 42 hotels around the world in the next 10 years.
“This business model enables us to use our existing resources to extend the global presence and reputation of our world famous resorts without committing significant capital,” Murren said.
Murren unveiled a new logo for MGM Resort International at Tuesday’s meeting. Murren also reaffirmed that the Mirage is not for sale.
MGM Resorts International had asked its shareholders to allow the company to change its name to MGM Resorts International in a filing with the Securities and Exchange Commission in April.
The company, formerly known as MGM Grand Inc., changed its name to MGM Mirage in May 2000 after it acquired Steve Wynn’s Mirage Resorts, which included the Mirage, Bellagio, Treasure Island and the Beau Rivage Resort and Casino in Biloxi, Miss.
The company will continue to trade on the New York Stock Exchange under the symbol “MGM.”
MGM Resorts International Chief Financial Officer and Treasurer Dan D’Arrigo said during Tuesday’s meeting the company injected $5 billion of liquidity into its balance sheet despite current economic conditions. D’Arrigo said the company is on much firmer financial ground than it was a year ago.
“A recovery is under way but it will take a lot longer than any of us would like and won’t come without some bumps in the road,” D’Arrigo said.
According to an annual regulatory filing handed out before the meeting, the company lost $1.291 billion in 2009, or $3.41 per share, compared to a net loss of $855.3 million, or $3.06 per share, in 2008.
Net revenue fell 17 percent to $5.978 billion in 2009 from $7.208 billion in 2008. The company cited the overall economic downturn as the reason for the decline.
A new rewards club program was also announced during Tuesday’s meeting. The program will be called M Life and will roll out this summer at the company’s regional properties and later this year in Las Vegas. Murren said the company has about 60 million names in its customer database.