MGM China 16Q4 revenue edges higher

MGM China Holdings reported an improvement in 16Q4 profit and said revenue edged up, helped mainly by a higher VIP hold.

The company said revenue was $500 million, an increase of $1 million over the prior year period. Main floor table games revenue was down 2 percent. VIP table games revenue increased 7 percent due to an increase in hold percentage to 3.7 percent in the current year quarter, compared to 3.0 percent in the prior year quarter, partially offset by a decrease in turnover of 16 percent compared to the prior year quarter.

Adjusted EBITDA increased 5 percent to $138 million, compared to $131 million in the prior year quarter.

On a group-wide basis, MGM Resorts International posted 16Q4 diluted earnings per share of $0.04, which was well below the Capital IQ forecast of $0.19.

Quarterly revenues for the casino and resorts operator were $2.46 billion, which was up from $2.19 billion in the year-ago quarter, and equal to the analyst forecast.

Morningstar analyst Chelsey Tam, however, noted that the underlying gaming performance was below expectation. 

"In addition to construction disruption and lower hold rate in the mass segment, we suspect the weaker performance is also due to Wynn Macau Limited moving some tables back to Wynn Macau in peninsula and new casino resorts creating more competitive pressure for MGM China," she said in a note on Friday. 

However the opening of MGM Cotai later this year may help to recapture market share loss, said Tam. 

Commenting on the results, Chairman and CEO Jim Murren said: "We are excited about the outlook for 2017, including the full year contributions from MGM National Harbor and Borgata, the continued favorable Las Vegas dynamics supported by our investments including T-Mobile Arena and the Park Theater, the opening of MGM Cotai in Macau, and our persistent drive for continuous improvement throughout all aspects of our company."

 

More news from this jurisdiction

MacauThursday, Apr 27, 2017

Theodore Racing is pleased to announce its partnership with BBIN will continue for the 2017 season.

MacauThursday, Apr 27, 2017

XPG is bringing its latest live casino technology, designed for existing operators and White Label entrepreneurs that wish to offer an unsurpassed live gaming experience.

MacauThursday, Apr 27, 2017

GPI is a leading global supplier with an extensive suite of table game products including chips, plaques, jetons, playing cards, RFID solutions, layouts and dice. GPI will be showcasing these as well as its newest currency, table layout and RFID offerings to its Asian market customer base this year.

MacauWednesday, Apr 26, 2017

While Macau has been focusing on boosting its non-gaming offerings, a scholar notes the future of Macau’s economy will still be based on gaming earnings for years to come.

MacauWednesday, Apr 26, 2017

Macau’s gaming regulator says it is still short of inspectors to oversee casino operations in the territory, Business Daily reports.

MacauWednesday, Apr 26, 2017

IDNPLAY Corporation is an online gaming company based in Manila, Philippines.

MacauWednesday, Apr 26, 2017

Crane Payment Innovations (CPI) will be exhibiting at G2E Asia with the most comprehensive portfolio of automated payment systems in the gaming industry.