Net revenue for Macau casino operator MGM China Holdings Ltd fell 2 percent year-on-year in the third quarter of 2014, to US$794 million, said the parent MGM Resorts International in a filing on Thursday.
MGM Resorts, which owns 51 percent of MGM China, also reported its third quarter results. The parent posted a diluted loss per share for the third quarter of US$0.04 compared to a diluted loss per share of US$0.05 in the prior year third quarter.
Consolidated net revenue for MGM Resorts was US$2.5 billion, a 1 percent increase over the third quarter of 2013.
Net revenue at MGM Resorts’ wholly owned U.S. properties increased 2 percent compared to the prior year period.
At MGM China, which currently operates one resort in Macau (MGM Macau), VIP table games revenue fell 19 percent for the period, which the parent said was “due primarily to a decrease in VIP table games turnover of 19 percent compared to the prior year quarter, as well as a decrease in hold percentage to 2.7 percent in the current year quarter compared to 2.8 percent in the prior year quarter”.
However revenue from main floor table games increased 34 percent compared to a year earlier. Main floor table games volume increased 15 percent and hold percentage was 28 percent in the current year quarter compared to 24.0 percent in the prior year quarter, added the parent.
Market-wide in the third quarter, gross revenues from Macau casino games fell 7 percent year-on-year said the local regulator the Gaming Inspection and Coordination Bureau on October 16.
MGM China’s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) were US$214 million, a 12 percent improvement compared to the prior year quarter.
Investment analyst Cameron McKnight, of Wells Fargo Securities LLC in New York, said MGM China’s EBITDA for the period was 12 percent above consensus of US$192 million.
MGM China’s third quarter numbers included US$12 million of branding fee expense compared to US$8 million in the third quarter of 2013.
MGM China’s adjusted EBITDA margin increased by 330 basis points compared to the prior year quarter to 26.9 percent, the parent company said.
Operating income was US$140 million compared to US$114 million a year earlier.
“I am proud of our team to have delivered another strong set of results that outperformed the market especially in terms of yield and growth rates,” said Grant Bowie, chief executive of MGM China in a statement accompanying the results.
The filing added that MGM China paid a US$137 million dividend in September 2014, of which US$70 million was distributed to MGM Resorts and US$67 million was distributed to “non-controlling interests”. Pansy Ho Chiu King, co-chairperson of MGM China, owns 27 percent of the Macau unit, according to recent filings.
MGM China is currently constructing a second resort in Macau. The US$2.9 billion MGM Cotai is currently scheduled to open in the autumn of 2016, Jim Murren, the parent firm’s chairman, said on Thursday. In the first half earnings statement, MGM Resorts had mentioned simply “2016” and prior to that had talked of “early 2016”.
Apr 25, 2018Macau’s casino regulator has approved the introduction of a new betting option for the casino game of baccarat as it is offered in the local market. The announcement was published in the city’s...
Apr 25, 2018
Jan 04, 2018BMM Testlabs “ticks all the boxes” with regard to its...
Dec 08, 2017The regulated casino industry is well versed in dealing...
Oct 23, 2017The presence of some of the leading cloud computing...
Jul 11, 2017The Tokyo local election setback for Japan’s governing...
Jul 06, 2017A multibillion U.S. dollar casino project on Vietnam’s...
"As CEO, I am not interested in looking at the rear-view mirror… I am only focused in the future"
Chief executive of Wynn Resorts and Wynn Macau