First-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) at Macau casino operator MGM China Holdings Ltd were a positive HKD1.41 billion (US$180.0 million), compared to an adjusted EBITDA loss of HKD402.1 million in the fourth quarter.
Judged sequentially, first-quarter total revenue was up by 253.3 percent, at HKD4.84 billion, compared to HKD1.37 billion in the fourth quarter.
The sequential improvements coincided with the relaxation in early January of Covid-19 rules in mainland China, Macau and Hong Kong.
MGM China had seen a “swift return to profitability”, said Bill Hornbuckle, chief executive and president of the majority owner, MGM Resorts International, as cited in a Monday press release from the parent.
The Macau unit said in its own press release that its market share of gross gaming revenue had reached a “historical high of 15.4 percent”.
“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,” said Kenneth Feng, president, strategic and chief financial officer of MGM China, as cited in the release.
The Macau operation had registered a “clean EBITDA beat,” said a Tuesday note from analysts DS Kim and Mufan Shi, of JP Morgan Securities (Asia Pacific) Ltd. They added – making a comparison to pre-pandemic trading in 2019 – that first quarter 2023 adjusted EBITDA had been “87 percent of first-quarter 2019”.
The analysts added: “Management commentary on second-quarter-to-date was also upbeat to indicate an even better recovery trend in April,” with “EBITDA at ‘well above 90 percent’ of pre-Covid.”
At MGM Macau, on the city’s peninsula, main-floor table games drop in the first quarter was HKD9.29 billion, compared to first-quarter 2022’s just under HKD5.19 billion.
That property’s first-quarter VIP table games turnover was HKD7.43 billion, relative to first-quarter 2022’s HKD3.55 billion. Slot machine handle was just under HKD4.30 billion, versus HKD2.88 billion a year earlier.
At MGM Cotai, in the city’s newer casino district, main-floor table games drop in the first quarter was HKD7.78 billion, compared to HKD3.37 billion a year earlier.
That property’s first-quarter VIP table games turnover was HKD11.27 billion, compared to HKD3.97 billion in first-quarter 2022.
MGM Cotai slot machine handle was just under HKD3.90 billion, versus HKD2.73 billion a year earlier.
The MGM Resorts parent reported consolidated net revenues of US$3.87 billion, an increase of circa 35.7 percent compared to the prior-year quarter.
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