China – MGM China operating at 11 per cent of pre-pandemic levelsBy Phil - 7 November 2022
During the third quarter, MGM China recorded total revenue of approximately HK$687m, compared to HK$1.1bn in the second quarter.
MGM China had market share of 13.2 per cent for the third quarter. Its GGR in third quarter was 11 per cent of 19Q4 pre-pandemic levels, compared to eight per cent of market levels.
“Our team focuses on positioning our properties to capture opportunities in premium mass business and preparing for return of demand in the longer term while controlling cost,” it said.
The Group recorded negative adjusted EBITDA of approximately HK$536m, compared to negative adjusted EBITDA of approximately HK$382 million previously. Occupancy was 21 per cent in the third quarter, compared to 25.6 per cent in the second quarter.
Macau and Greater China are under the adverse impact of the COVID-19 pandemic in 2022. A local outbreak in Macau at end-June led to safeguard measures, including a 12-day suspension of business activities in July and tightened travel and border controls during the quarter, have severely hampered Macau visitation.
Daily visitor arrivals for Macau and visitation from mainland China both decreased by 44% from the second quarter.
Headline GGR in the third quarter was down further hit the lowest level since the border opened. Market-wide GGR was down 35 per cent quarter-to-quarter to MOP5.5bn, representing eight per cent of pre-pandemic levels.
During the reporting period, Macau has made significant progress and set preparation for retendering of gaming concession. On July 1, the Macau Chief Executive approved Administrative Regulation 28/2022, which covers details of the bidding for gaming concessions, the qualifications of bidding companies and the criteria for granting. On July 28, the Chief Executive Dispatch was published and announced the opening of the public tender.
MGM China said: “We have officially submitted in September our application for a new concession and we remain committed to supporting Macau’s continual development as a world-class tourism and leisure destination. The Macau government is in the process of reviewing each of the concessionaire proposals and it is expected the granting of the new concession to be announced by the end of the year.”
“On the other hand, the China’s National Immigration Administration has announced it accepts applications for electronic travel permits for mainland residents to travel to Macau, started November 1. This resumption includes group tour visas and Individual Visitor Scheme visas for all 49 eligible cities. The Administration further stated that Mainland Chinese’s demand for travel to Macau has been increasing.”
Kenneth Feng, President, Strategic & Chief Financial Officer of MGM China said: “We aim to support the Macau government in achieving its diversification goals and will continue to invest in innovative projects and programs that help the region flourish. We expect the travel relaxation measures will drive a gradual recovery in visitation. We look forwards to participating in the future development of Macau.”