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China – MGM China continues to outperform the Macau market, operating at 84 per cent of 2019’s levels

By - 2 May 2023

MGM China continued to outperform the market amid of industry recovery for the three months ended March  31, 2023, with net revenue increasing by 131.2 per cent year-on-year to HK$4.8bn for the Period, reached 84 per cent of first quarter 2019. 

Macau saw a pick up of visitation soon after the lifting of travel restrictions and quarantine requirements from COVID-19 pandemic in late December. Average daily visitor arrival for the Period reached approximately 55,000, compared to approximately 21,000 a year ago. Average daily visitation for the Period recovered to 48 per cent of first quarter 2019, and it experienced month-on-month growth during the Period and reached approximately 63,000 in March.

The ease of travel restrictions to Macau also boosted the market gross gaming revenue (GGR). Industry daily GGR nearly doubled to MOP385m, represented a 45 per cent recovery of first quarter 2019.

Daily GGR for the Period recovered to 76% of first quarter 2019, outperformed industry’s 45% recovery.

MGM China saw record high mass GGR during the Period. Daily mass GGR surpassed pre-COVID levels at 107% of first quarter 2019, higher than market’s 60-70 per cent levels.

We saw market share reach historical high of 15.4 per cent during the Period, compared to 13.3 per cent a year ago and 9.4 per cent in first quarter 2019. MGM MACAU market share was 7.5 per cent and MGM COTAI market share was 7.9 per cent.

Adjusted EBITDA margin also grew to 29.2 per ent, compared to 28.1 per cent in first quarter 2019, with a mass-focused business and continuous improvement in operation efficiency.

Average occupancy was 90.5 per cent, compared to 49.2 per cent same period a year ago.

On a property basis, MGM MACAU recorded revenue of HK$2.3bn and an adjusted EBITDA of HK$695m.

MGM COTAI saw revenue of HK$2.5bn, up from HK$914m and an adjusted EBITDA of HK$718m.

The Group maintained a healthy financial position. As of March 31, 2023, the Group had total liquidity of approximately HK$15.5bn, comprised of cash and cash equivalents and undrawn revolver.

The group was grateful for the team’s effort in achieving the outperformance. It also demonstrated its key structural incremental advantages, including its deep understanding of customers with continued improvements in service levels. It improved its offering, with remodels of the main gaming floors at both MGM MACAU and MGM COTAI to focus on mass and premium mass customers, enhancing profitability with additional tables.

Under the gaming concession contract effective January 1, 2023, the Group is entitled to operate a total of 750 gaming tables, compared with 552 gaming tables previously, represents a 36 per cent increase. All the tables were licensed as of the end of the first quarter. We will open them and increase productivity as demand returns and we complete further refurbishments on the gaming floors.

Kenneth Feng, President, Strategic & Chief Financial Officer of MGM China said: “Our remarkable performance in Macau is a direct result of the meticulous preparation and well-executed plan put together by our team who ensured that we were ready to capture market share and drive results upon market reopening.

“The recovery in Macau has been encouraging. We will stay dedicated to fulfilling our commitments to the Macau Government. We look forward to working alongside them as we support Macau’s positioning as a World Center of Tourism and Leisure,” said Kenneth Feng.

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