US-based gaming company MGM Mirage has reported a 60 per cent jump in second quarter earnings to US$1.7bn (£1bn, 1.4bn euro), reflecting the positive impact of the US$7.9bn (£4.5bn, 6.5bn euro) acquisition of the Mandalay Resort Group in April.

Net income rose to US$141m (£80m, 116m euro), compared with US$104.7m (£60m, 86m euro) last year.

Casino revenue increased by 39 per cent, while hotel revenue rose by 96 per cent, due to the additional rooms from Mandalay and an expansion at the Bellagio Hotel and Casino in Las Vegas.

Excluding these additions, revenue available per room (REVPAR) increased by 15 per cent compared with the same period in 2004.

Jim Murren, president, CEO and treasurer, said: “We are rapidly realising the benefits of integrating the Mandalay resorts and believe we are on target for at least US$100m (£57m, 82m euro) of annualised merger-related benefits.”

The company has also announced plans to transform its flagship Mirage Hotel and Casino, to keep up with “an increasingly competitive market”. New restaurants, a nightclub, a lounge and a new gaming area will be introduced and the resort’s signature volcano will be revamped.

MGM Mirage operates 24 hotel and casino properties in Nevada, Mississippi and Michigan. Details: www.mgmmirage.com