China – MGM reports impressive year prior to Coronavirus outbreakBy Phil - 13 February 2020
Prior to the effects of the Coronavirus taking a grip on its revenues, MGM China saw revenue up by 19 per cent to approximately HK$22.8bn over the last year.
Adjusted EBITDA grew by 28 per centyear-on-year to approximately HK$6.2bn. MGM China recorded a growth of approximately 37 per cent year-on-year for mass table win, one per cent growth for slot win; and flat year-on-year performance growth for VIP table game win.
Overall occupancy reached 93.1 per cent.
Full year market share rose to 9.5 per cent, up from 7.9 per cent in 2018, the highest in five years. MGM China sees approximately 86 per cent of profit from non-VIP businesses last year.
MGM COTAI continues to ramp since the property opened in February 2018. It recorded growth across all business segments. Adjusted EBITDA was up 177 per cent to HK$2.4bn. Main floor table games win was up 77 per cent year-on-year to approximately HK$6.9bn. Slot win was up 41 per cent to HK$1bn. VIP table games win was up 220 per cent to approximately HK$4bn..
Meanwhile MGM Macau remains resilient and generated solid profit on the Peninsula, where accounted for about one-third of overall Macau gross gaming revenue in 2019. Adjusted EBITDA was down four per cent to HK$3.8bn last year with a margin of 30.9 per cent. The property has completed a seven-month renovation on the casino floor in October. We have seen encouraging initial results on mass performance and look forwards to further optimisation on gaming floor.
MGM hotels are now closed, followed the Macau government decision on February 5 to temporarily suspend operations of all casinos in the city to prevent the spread locally of the coronavirus infection.
Grant Bowie, Chief Executive Officer and Executive Director of MGM China said: “We are grateful for the decisive actions and leadership of the Macau government it takes to contain the coronavirus. MGM places high importance on the health and safety of our team members, guests and all Macau citizens, and fighting against the epidemic is its current topmost priority. We will continue to work with government and our MGM team as we are preparing for the recovery. Premium focus remains the key strategy for MGM as we continue to focus on growth and profitability. We have opened all the villas of Mansions last year as part of our unique high-end offerings to boost player retention and new player acquisition.”