• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

MGM China adjusted EBITDA loss shrinks sequentially in 3Q

Oct 30, 2020 Newsdesk Latest News, Macau, Top of the deck  


MGM China adjusted EBITDA loss shrinks sequentially in 3Q

Macau casino operator MGM China Holdings Ltd reported a smaller loss in adjusted property earnings before interest, taxation, and depreciation (EBITDA) in the third quarter as compared to the April to June period, thanks to a slight revenue rebound led by a twofold rise in mass-market bets.

The Hong Kong-listed company said its third-quarter adjusted property EBITDA were negative by HKD730.6 million (US$94.3 million), smaller than the adjusted EBITDA loss of HKD885.7 million posted in the previous quarter. The latest result was nonetheless a sharp dip from the positive EBITDA of HKD1.5 billion that MGM China reported in the third quarter of 2019.

Carlo Santarelli and Steven Pizzella of Deutsche Bank Securities Inc, nonetheless noted in a Friday memo, that third-quarter Macau operations had presented a “challenge” for investors, with EBITDAR – i.e., EBITDA including rent and restructuring costs – being “US$16.0 million below our forecast”.

MGM China’s numbers in its Hong Kong filing were given under international financial reporting standards. MGM Resorts International, MGM China’s 56-percent parent as of the date of the filing, uses United States generally-accepted accounting principles (U.S. GAAP).

In commentary on trading in October – outside the reporting period – the MGM group’s management had mentioned a trend of positive EBITDA.

Andrew Lee, an analyst at Jefferies Group LLC, said in a Friday note: “The focus remains anecdotal information on the pace of Macau recovery with management noting their properties were EBITDA positive for the ‘past few weeks’ but they expect only a gradual recovery led by premium mass.”

DS Kim, Derek Choi and Jeremy An, analysts at JP Morgan Securities (Asia Pacific) Ltd said in a Friday memo: “Without providing gross gaming revenue figures, MGM [China] said volumes across all segments have improved steadily from the second week of October… led by premium mass – essentially echoing what its peers were saying.”

MGM Resorts said third-quarter net revenues at MGM China fell 94 percent year-on-year, to US$47 million – about HKD364 million – from US$738 million. In a press released the company blamed the “severe impact” of the Covid-19 pandemic for “low visitation levels primarily driven by various travel restrictions and quarantine measures”.

Mass, VIP performance

In the third quarter MGM China posted US$143 million main-floor table game drop, up from just US$66 million in the previous quarter, according to the parent. A year earlier MGM China had posted nearly US$8.65 billion in mass-market table game drop.

Hubert Wang, president and chief operating officer of MGM China, stated in the press release issued by the local unit, that he expected the rate of recovery to “continue to be gradual, driven by the premium mass market”.

Starting from August 26 as part of travel-easing measures following the initial impact of Covid-19, eligible residents from the neighbouring mainland province of Guangdong have been allowed to apply for an exit visa for tourist trips to Macau, either as part of a tour group or under China’s Individual Visit Scheme programme. The measure was extended to residents from other mainland regions from September 23.

Volume in MGM China’s VIP table game segment improved sequentially in the third quarter, with the firm posting a quarterly rolling chip volume of US$929 million, more than twice as much as the US$450-million VIP turnover in the second quarter.

However, MGM China said its VIP table games win percentage was 1.9 percent, much lower than what it stated was the normal range of 2.6 percent  to 3.3 percent.

The results in Macau and for the parent were “negatively impacted by US$10 million, due to low hold at both MGM China and Las Vegas,” said a Friday memo from brokerage Sanford C. Bernstein Ltd.

MGM China runs two casino resorts in Macau: MGM Macau on the city’s peninsula, and MGM Cotai, in Macau’s Cotai district.

The older property, MGM Macau saw its revenue rise 89 percent sequentially from the second quarter, to just under HKD263.9 million and its negative adjusted EBITDA shrink 29.9 percent to HKD274.2 million.

At the newer MGM Cotai, revenue fell 16.1 percent sequentially to HKD99.4 million. Its negative adjusted EBITDA was HKD456.3 million.

Mr Wang said construction of additional suites at MGM Cotai was “under way” and it was expected the new accommodation would be “launched in 2021”.

Casino operations in Macau were the biggest contributor to the parent group’s overall adjusted property earnings before interest, taxation, depreciation and rent or restructuring (EBITDAR) loss of US$49 million in the third quarter, smaller than the loss of US$492 million in the second quarter.

MGM China said it maintained “a healthy financial position” with total liquidity of HKD10.9 billion, consisting of “cash and cash equivalent and undrawn revolver” as of September 30.


  • tweet
Related articles
  • U.S. tied Macau ops not pressed to pay dividend: S&P
    U.S. tied Macau ops not pressed to pay...

    May 23, 2023  

  • IR implementation draft by Sept says Osaka governor
    IR implementation draft by Sept says...

    May 11, 2023  

More news
  • Lam Yi Young resigns as deputy CEO Resorts World Sentosa
    Lam Yi Young resigns as deputy CEO...

    Jun 02, 2023  

  • China stimulus package could benefit Macau stocks: CBRE
    China stimulus package could benefit...

    Jun 02, 2023  


Latest News

Lam Yi Young resigns as deputy CEO Resorts World Sentosa

Lam Yi Young resigns as deputy CEO Resorts World Sentosa

Jun 02, 2023  

Genting Singapore Ltd says Lam Yi Young has resigned from his role as deputy chief executive of Resorts World at Sentosa Pte Ltd. The latter firm is an indirect wholly owned subsidiary of Genting...
Read More
China stimulus package could benefit Macau stocks: CBRE

China stimulus package could benefit Macau stocks: CBRE

Jun 02, 2023  

G2E Asia 2023: Singapore

  • Alfastreet’s new Verso cabinet heading to Asian markets
    Alfastreet’s new Verso cabinet heading to Asian markets

    Jun 01, 2023  

    Alfastreet, a manufacturer of electronic gaming machines,...
  • Sega Sammy Creation growing land-based, eyes online
    Sega Sammy Creation growing land-based, eyes online

    Jun 01, 2023  

    Casino equipment maker Sega Sammy Creation Inc is tweaking...
  • iGaming growing in Asia, ops tackling challenges: Uplatform
    iGaming growing in Asia, ops tackling challenges: Uplatform

    Jun 01, 2023  

    The iGaming segment in Asia “has grown rapidly” since...
  • ‘See before you play’ slot marketing tool, say tech suppliers
    ‘See before you play’ slot marketing tool, say tech...

    May 31, 2023  

    Showing slot machine players – via animations on the...
  • Macau stocks tied to China outlook: Bloomberg analyst
    Macau stocks tied to China outlook: Bloomberg analyst

    May 31, 2023  

    Macau stocks in likelihood “have been punished too much...
  • Investors still eye possible fresh IR locations in Japan: scholar
    Investors still eye possible fresh IR locations in Japan:...

    May 31, 2023  

    There are foreign companies still interested in investing...
  • Thai casino law possible in 2024, IR in 2030: govt adviser
    Thai casino law possible in 2024, IR in 2030: govt adviser

    May 31, 2023  

    Thailand could pass the necessary enabling legislation for...
  • China still ‘critical’ to Asian markets: G2E Asia panel
    China still ‘critical’ to Asian markets: G2E Asia panel

    May 30, 2023  

    China will remain a key market for Asian gaming...
  • Much interest in state casinos sale, says Pagcor boss Tengco
    Much interest in state casinos sale, says Pagcor boss

    May 30, 2023  

    Alejandro Tengco (pictured in a file photo), chairman and...
  • Gaming industry in for a very exciting period: Bill Miller
    Gaming industry in for a very exciting period: Bill Miller

    May 30, 2023  

    There are “plenty of reasons” for the global gaming...
  • IGT flags route to high-performing games for Asia
    IGT flags route to high-performing games for Asia

    May 30, 2023  

    Gaming equipment provider International Game Technology Plc...
  • G2E Singapore trade show, conference begins today
    G2E Singapore trade show, conference begins today

    May 30, 2023  

    The Global Gaming Expo (G2E) Asia 2023 Special Edition:...
  • Novomatic’s Black Edition II cabinets at G2E in Singapore
    Novomatic’s Black Edition II cabinets at G2E in Singapore

    May 29, 2023  

    Austria-based gaming equipment maker and operator Novomatic...
  • Uplatform to show latest iGaming products at G2E Singapore
    Uplatform to show latest iGaming products at G2E Singapore

    May 25, 2023  

    Sports betting and online casino operating platform...
  • L&W ambition to be No1 in Asia well on its way: SVP gaming
    L&W ambition to be No1 in Asia well on its way: SVP...

    May 24, 2023  

    The business performance in Asia of gaming content and...
  • G2E Singapore expecting 6k visitors, 100+ exhibitors
    G2E Singapore expecting 6k visitors, 100+ exhibitors

    May 18, 2023  

    The organisers of Global Gaming Expo (G2E) Asia 2023...
  • ‘Dragon Unleashed’ slot link by L&W at G2E in Singapore
    ‘Dragon Unleashed’ slot link by L&W at G2E in...

    May 17, 2023  

    Gaming content and equipment supplier Light & Wonder...
  • Sega Sammy Creation new multi-ETG at G2E in Singapore
    Sega Sammy Creation new multi-ETG at G2E in Singapore

    May 16, 2023  

    Casino equipment maker Sega Sammy Creation Inc is to...
  • Aristocrat at G2E Asia in Singapore previews Year of Dragon
    Aristocrat at G2E Asia in Singapore previews Year of Dragon

    May 09, 2023  

    Casino slot machine and digital gaming content provider...
  • IGT ‘Prosperity’ link in Asia show debut G2E in Singapore
    IGT ‘Prosperity’ link in Asia show debut G2E in...

    May 05, 2023  

    The Global Gaming Expo (G2E) Asia event in Singapore is the...
  • Thai parliament adviser on casinos attending G2E Singapore
    Thai parliament adviser on casinos attending G2E Singapore

    May 04, 2023  

    An adviser to a Thailand parliamentary committee mulling...

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$8.1 billion

Macau’s casino gross gaming revenue in the five months to May 31



Most Popular

  • MBS en route to US$500mln quarterly EBITDA: LVS bossMBS en route to US$500mln quarterly EBITDA: LVS boss June 1, 2023
  • Lam Yi Young resigns as deputy CEO Resorts World SentosaLam Yi Young resigns as deputy CEO Resorts World Sentosa June 2, 2023
  • Macau May GGR tops US$1.9bln, up 6pct from Apr: govtMacau May GGR tops US$1.9bln, up 6pct from Apr: govt June 1, 2023

Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us