Macau-based casino operator MGM China Holdings Ltd says its adjusted earnings before interest, taxes, depreciation and amortisation (EBIDTA) grew by 41.3 percent to about HKD1.46 billion (US$186.4 million) in the second quarter compared to the corresponding period last year.
MGM China reported its results in Hong Kong this morning after its parent company, MGM Resorts International, announced group-wide data in Las Vegas, Nevada, following the market close in New York on Thursday.
MGM China said total revenue at its two Macau properties grew by 25.7 percent to about HKD5.54 billion in the second quarter. The company said the increase was mainly due to the continued ramp up of operations at MGM Cotai (pictured).
For the first six months of this year, MGM China’s adjusted EBITDA was up 33.3 percent in year-on-year terms to about HKD3.08 billion. Revenue was up 24.5 percent, to about HKD11.30 billion, in year-on-year terms for the same period.
Grant Bowie, MGM China chief executive and executive director, said: “We are excited to see the ramping up of MGM Cotai. The recent opening of The Mansion offers exclusive luxury to the next level and helps us better positioned in the premium segment.”
MGM China opened its Cotai casino resort in February last year and in March this year added The Mansion, a high-end accommodation cluster aimed at VIP players.
Brokerage JP Morgan Securities (Asia Pacific) Ltd said in a note on Friday that MGM China’s second quarter results “were better-than-feared, both on EBITDA (plus 3 percent beat) and details (share gains in both mass and VIP, led by Cotai ramp).”
Analysts at brokerage Jefferies Hong Kong Ltd pointed out that MGM China’s management remained “optimistic” about the outlook for its mass gaming segment, with “no weakness in premium mass.”
MGM Resorts said there had been a 6.5-percent increase in the VIP turnover at its two Macau casinos in the second quarter.
VIP table games turnover at MGM Cotai was about HKD35.05 billion in the three-month period ended June 30, up significantly from HKD3.43 billion at the corresponding period last year.
MGM China said its Cotai property recorded an adjusted EBITDA of about HKD487.5 million in the second quarter, up from HKD196.3 million in the corresponding period last year.
The win on main floor table games was up 50.4 percent in year-on-year terms, to about HKD1.61 billion in the three months ended June 30; slot machine gross win was up 15.4 percent to HKD263.2 million; and the win for VIP table games rose to about HKD932.9 million from HKD101.2 million in the prior-year period.
The MGM Macau property reported EBITDA of about HKD970.4 million for the second quarter, up from HKD835.0 million in the corresponding period last year.
At June 30, the MGM Macau property in the Macau peninsula district had 291 tables and 1,080 slot machines and the newer Cotai property had 261 tables with 1,203 slots.
Looking ahead, MGM Resorts International chairman and chief executive Jim Murren said the company was focused on its plans for Japan, where it is vying for a licence to operate a casino resort in Osaka
“We remain excited about our targeted growth opportunities in Japan,” he said in prepared comments released with the group’s results.
Mr Murren added that MGM Resorts’ corporate restructuring plan, MGM 2020, was on track.
At the end of June, the parent company had US$14.8 billion in debt, which included US$701 million outstanding under the US$1.6 billion MGM China credit facility.
In May, MGM China issued US$1.5 billion of new debt; US$750 million of 5.375 percent senior notes due 2024 and US$750 million of 5.875 percent senior notes due 2026.
The board of MGM Resorts approved a quarterly dividend of US$0.13 a share to be paid on September 16 to shareholders on the company’s register on September 10.
