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.”

 

SHARE

Related Articles

Macau operators make CSR push amidst coronavirus crisis

As the Covid-19 crisis descended upon, first, China, then the world, the six Macau operators have not been idle in their CSR efforts, in spite of the mandated casino closures and reopenings under difficult economic conditions.

Economic toll deepens, but underlying optimism intact

The Coronavirus, now renamed as Covid-19, has devastated the near-term outlook for Asia’s casino operators, though analysts still expect demand to snap back sharply once the outbreak is under control. The big question is when that might be.

Macau’s CSR drive – with one eye on Beijing?

Macau’s operators have stepped up their corporate social responsibility (CSR) efforts in recent years, in particular when it comes to China cultural cooperation, which may help their case when it comes to concession renewal.

MGM China/Melco announce bonus for non-management staff

MGM China said it will pay a bonus equivalent to one-month's salary to all eligible non-management employees, which covers about 90 percent of staff. 

MGM China says no plans for restructuring

MGM China said it currently has no plans to restructure its operations, responding to a letter from investor Snow Lake Capital urging the company to sell a 20 percent stake to a Chinese internet or leisure firm.
ladbrokes

MGM’s Entain bid may create “butterfly effect” in Asia

It’s been anything but a slow start to the New Year. While only in its embryonic stages, MGM Resorts International’s bid for the U.K.’s Entain has the potential to trigger a chain of events that could have wide reaching implications for gaming in Asia.

Snow Lake Capital urges MGM to sell 20% of its China business

Investment firm Snow Lake Capital has urged MGM Resorts in an open letter to sell 20 percent of its China business to a strategic partner, calling it a “win-win transaction” for all. The firm owns roughly 7.5 percent of MGM China Holdings.
Sands Parisian

Can staycations save Christmas?

As we near the end of a tourism-free year, the industry is gearing up for one last push to salvage annual revenue with a round of campaigns to capitalize on the upcoming holiday season. Reliance on locals and “staycation” marketing have been a theme of the year, with varying degrees of success around the region.
Hong Kong Stock Exchange

Operator stocks fall as Covid clusters reemerge

After the vaccine-induced stock euphoria earlier this month, Covid-19 has returned to dampen investor enthusiasm.
Ho Iat Seng

Macau gaming law revision not likely until late 2021

Consolidation of the bases and advancement in adversity was the thrust of Macau Chief Executive’s policy address for 2021, though it gave little away when it came to the current pillar of the economy - the gaming industry.