MGM China saw a stunning third quarter, with net revenues up some 829 percent, to $812.52 million, a rise of 10 percent compared to the same quarter in 2019.
Adjusted property EBITDAR rose by 23 percent compared to the same pre-pandemic quarter, to $226 million, reversing a loss of $70 million in 3Q22.
This comes on the back of casino revenue growth of 915 percent yearly, to $714 million.
Revenue at the group’s MGM Cotai property outshone that of its peninsula venue, with the flagship earning some HK$3.48 billion during the period, a ten-fold rise yearly.
Meanwhile, MGM Macau saw a 650 percent yearly increase, to HK$2.87 billion.
The group managed to reverse its negative EBITDA figures for both properties, seeing a gain of HK$880.46 million at MGM Macau and HK$1 billion at MGM Cotai.
MGM’s CEO, Bill Hornbuckle, noted that “MGM China is performing exceptionally well”.
The group’s parent company, MGM Resorts International in total recorded some $3.97 billion in revenue during the quarter, of which $2.05 billion was derived from its casino operations. The group also recorded a $161.11 million profit during the quarter, reversing a loss of $576.83 million in the same quarter of last year.
Looking ahead, the group’s CEO notes that “we have a pipeline of development opportunities including New York and Japan alongside the growth and development of our international digital business and BetMGM.”
The group has been persistent in its pitch for a New York gaming license, while pushing forward its 2,500-room $10-billion integrated resort in Osaka, Japan.
Headwinds
The company is also facing the consequences of the recent cyberattack in September, with the group’s CEO noting: “with the incident now behind us, we are a stronger company having been through the challenge”.
The group has allocated some $100 million in expectation of repercussions from the cyberattack, as announced last month.
In the United States, the group is also facing a possible strike of its workers, with up to 35,000 industry professionals from MGM, Wynn and other operators scheduled to protest on Friday unless labor contract conditions are worked out.
US market
The group’s Las Vegas operations continued to yield strong results, despite a yearly drop of 8 percent, which it attributes to the ‘disposition of The Mirage in December of 2022 and the cybersecurity issue in September of 2023’.
Adjusted property EBITDAR reached $714 million, down from $846 million in 3Q22, a 16 percent fall.
Regarding the group’s regional properties, some $925 million in net revenue was recorded, a 5 percent yearly drop, attributed to the ‘disposition of Gold Strike Tunica in February 2023 and the cybersecurity issue’.
Adjusted property EBITDAR fell by 9 percent, to some $293 million.
