MGM China saw its revenue grow 3.0% for Full Year 2017 to HK$15.4 billion, aided by strong fourth quarter results in which net revenue rose 10% year-on-year and 17% sequentially to HK$4.6 billion.
Casino revenue at MGM Macau contributed the vast majority of MGM China’s revenue for the 12 months to 31 December 2017 at HK$15.1 billion, with Adjusted EBITDA for the period up 2.1% to HK$4.6 billion. However, operating profit fell 15.3% to HK$2.6 billion due to “acceleration of pre-opening costs” amounting to HK$459.1 million for MGM Cotai, which opened its doors on 13 February 2018.
Despite ongoing delays to the opening of its new Cotai integrated resort, which had been planned to launch in 4Q17 before Typhoon Hato caused extensive damage in August, MGM China saw strong results in the fourth quarter with revenue up 10% year-on-year to HK$4.6 billion. Mass market revenue grew 21% for the period compared to 4Q16, with volume up 10% and hold percentage up to 21%.
Full year results saw main gaming floor revenue climb 5.9% to HK$8.1 billion with slot machine revenue up 11.9% to HK$1.4 billion. VIP revenue fell marginally to HK$8.6 billion.
The strong finish to 2017 exceeded expectations and bodes well for the company now that MGM Cotai is operational, with analysts having previously described MGM’s new IR as a “game-changer.”
MGM Cotai opened last week with 100 new-to-market gaming tables and 982 slot machines, with MGM China also moving 77 tables across from the peninsula. MGM Cotai more than triples the company’s hotel room inventory.
“We are reinventing the integrated resort of today,” said MGM China CEO and Executive Director Grant Bowie. “What we recognize globally is the transformation of people’s life to the digital platform. At MGM Cotai we are creating a space that our guests can actively participate and experience the content we offer.
“We believe MGM Cotai will drive greater product diversification and bring more advanced and innovative forms of entertainment to Macau as it grows as a global tourism destination.”
MGM China has proposed a final dividend of HK$0.097 per share.