MGM China has recorded 44 percent yearly drop in revenue during the fourth quarter of 2022, to HK1.366 billion ($174.05 million), with total adjusted EBITDA loss increasing to HK$402.12 million ($51.23 million), up nearly four-fold.
Casino revenue during the period amounted to just $145 million, down by 47 percent yearly, with main floor table games drop down 45 percent, to $638 million and VIP table games turnover down by 44 percent, to $980 million.
The group notes that the quarter was ‘negatively affected by a three-day COVID-19 related property closure of MGM Cotai – which occurred after a croupier was found to have been infected.
More importantly, the quarter was ‘significantly impacted by travel and entry restrictions in Macau compared to the prior year quarter’.
Despite the yearly drops, MGM China did see a quarterly uptick, with net revenues rising from the $87.48 million recorded in 3Q22 and its adjusted property EBITDAR loss decreasing from the $70.41 million registered in the third quarter.
MGM Resorts International, the parent company of MGM China, saw its Las Vegas Strip operations drive its quarterly results, with the group achieving its “fifth consecutive quarter of record-breaking Las Vegas Strip Resorts Adjusted Property EBITDAR in the fourth quarter,” the group’s CEO and President announced.
The group’s CFO further noted that the group had “achieved exceptional results in the fourth quarter and remain optimistic in our outlook for this year”.
Las Vegas Strip EBITDAR totaled $877 during the quarter, up 26 percent yearly, with $2.3 billion in net revenues during the period, up 27 percent.
The group notes that the results were driven by ‘the inclusion of The Cosmopolitan and an increase in business volume and travel activity compared to the prior year quarter, partially offset by the disposition of The Mirage’.
Hard Rock has now assumed the operations of The Mirage, after MGM sold it for $1.07 billion.
Overall, the group saw consolidated net revenues of $3.6 billion in 4Q22, up 18 percent annually.
However, it recorded an operating loss of $2 million, down from the operating income of $369 million in 4Q21.
Net income however was $284 million, up from $131 million in 4Q21.
MGM Resorts also recorded a consolidated adjusted EBITDAR of $957 million during the fourth quarter of 2022.
