Macau gaming operator MGM China has reported a record second-quarter adjusted property EBITDAR of HK$2.44 billion ($312.72 million), a quarterly record and a yearly rise of 39.8 percent.
In the latest financials, released late Wednesday, the group indicates that revenue topped HK$7.95 billion ($1.02 billion),during the quarter, up by 37 percent yearly, with strong contributions from both its Cotai and Macau peninsula properties.
The group also noted that ‘the current quarter was positively affected by the continued ramp up of operations after the removal of COVID-19 related travel and entry restrictions in the first quarter of 2023.
MGM Cotai
The group’s Cotai Strip property contributed the most revenue during the quarter, at HK$4.7 billion ($601.5 million), a yearly rise of some 45.46 percent. Adjusted EBITDA figures also rose by nearly 50 percent, topping HK$1.45 billion ($186.75 million).
This was propped up by strong mass floor play, with main table games drop up by 45 percent yearly, to HK$15.65 billion ($2 billion).
Meanwhile, VIP table games turnover fell slightly year-on-year – by 1.5 percent, to HK$23.62 billion ($3.023 billion).
Slots also saw growth, with the slot machine handle totaling HK$7.31 billion ($936.3 million), up by 38 percent yearly.
The group also saw a slight uptick in its room occupancy rate, at 94.2 percent, a rise of 2 percentage points.
MGM Macau
Looking to the group’s peninsula property, revenue rose by 26.45 percent yearly, to HK$3.26 billion ($417.3 million), while adjusted EBITDA was up 27.66 percent, to HK$984.2 million ($125.97 million).
Main floor table games drop rose by 22.22 percent year-on-year, hitting HK$14.33 billion ($1.83 billion), while VIP table games turnover fell slightly – 1.7 percent, to HK$8.31 billion ($1.06 billion).
The slot machine handle for the property was actually higher than in Cotai, at HK$7.38 billion ($945.38 million), a yearly rise of 32.32 percent.
The room occupancy rate rose to 94.8 percent, from 94 percent in 2Q23.
MGM China
In consolidated results, the group announced that it saw a 33 percent increase in casino revenue yearly during the second quarter, at $891 million.
This was boosted by main floor table games drop of $3.83 billion, also a one-third yearly increase.
The group notes that its ‘market share remained in the mid-teens’.
MGM Resorts
Overall, the parent company of MGM China, MGM Resorts International, recorded a slight drop in net income, to $187 million, from $201 million in 2Q23.
Revenue for the group was $4.3 billion, up by 10 percent yearly which it notes was ‘due primarily to an increase in revenue at MGM China’.
The group’s Las Vegas operations contributed some $2.2 billion in net revenues, up by 3 percent yearly ‘due primarily to an increase in rooms revenue […] and an increase in catering and banquets revenue’.
Adjusted property EBITDAR was up just 1 percent yearly, to $782 million.
Regional operations revenue was flat, at $927 million, with a 2 percent fall in adjusted property EBITDAR to $288 million.
CEO statement
Speaking of the results, Bill Horbuckle, CEO and President of MGM Resorts International noted: “MGM Resorts continued to drive positive financial results and solid growth in the second quarter, with record MGM China Adjusted Property EBITDAR and further growth in Las Vegas where our Marriott relationship continues to exceed expectations and our meetings and convention business continues to strengthen thanks to our recently completed remodel of Mandalay Bay”.
The group continues on track with its Japan project, with groundbreaking on main construction works to take place in 2025, after ‘liquefaction countermeasure works’ in 4Q23. The grand opening is still expected in 2030.
