MGM China thrives in 1Q 2024, surpassing pre-Covid levels??

Jenny Ortiz May 2, 2024

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MGM China thrives in 1Q 2024, surpassing pre-Covid levels??

MGM China has recorded a record-high adjusted EBITDA and market share during the first quarter of 2024, this followed another remarkable quarter. Unaudited results revealed adjusted EBITDA reaching HKD2.5 billion (€298.3 million), marking a?77.3 percent year-on-year increase and a 155 percent surge from the first quarter of 2019.??

According to the company’s report, the group attributes its stellar EBITDA results to its mass-focused business approach and ongoing enhancements in operational efficiency, underscoring its ability to adapt and thrive in evolving market conditions.

Brokerage firm Citi earlier said in a report that MGM China is among the pack who will lead in operational performance in Macau’s gaming sector.

MGM China’s market share climbed to 17 percent in the first quarter of 2024, up from 15.2 percent in the same period last year and a notable increase from 9.5 percent in the first quarter of 2019. Moreover, MGM Cotai and MGM Macau contributed significantly to this growth, with market shares of 10.1 percent and 6.9 percent, respectively.

Revenue surge and strong financials??

MGM Cotai reported revenue of approximately HKD4.8 billion (€572.7 million) during the quarter, representing substantial increases from previous periods. Adjusted EBITDA at MGM Cotai surged to HKD1.4 billion (€167 million), while MGM Macau’s revenue reached HKD3.5 billion (€417.6 million), accompanied by an adjusted EBITDA of HK$1.1 billion (€131.2 million).

Robust financial metrics??

Overall, MGM China’s net revenue soared by 70.6 percent year-on-year, surpassing 143 percent of first-quarter 2019 levels, totalling HK$8.3 billion (€990.4 million). Gross gaming revenue rose by 7 percent quarterly, reaching 74 percent in the same period in 2019, reflecting strong performance in the gaming segment.

Optimistic outlook and dividend declaration??

MGM China’s President and Executive Director, Kenneth Feng, expressed confidence in the company’s future and its commitment to shareholders. The company proposed a total dividend of HKD0.347 (€0.041) per share, underscoring its confidence in the resilience and potential of Macau’s gaming industry.?

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details?here.