MGM China has reported a loss attributable to owners of the company of HK$2.41 billion (US$306 million) for the six months to 30 June 2022 as COVID-19 restrictions across China continue to bite.
A day after parent company MGM Resorts International reported record results in 2Q22 on the back of booming business in the United States, its Macau-based subsidiary saw its losses widen from HK$1.73 billion (US$221 million) over the same period last year. Casino revenue fell 33.4% to HK$2.75 billion with an Adjusted EBITDA loss of HK$336.7 million.
The company said it has not recommended payment of an interim dividend for the first half of 2022.
“The COVID-19 pandemic continued to have significant impacts on our business, results of operations and financial condition during the reporting period,” MGM China said.
“[COVID-19] restrictions have a significant impact on visitation to MGM MACAU and MGM COTAI and caused a significant adverse effect on the Group’s results for the six months ended June 30, 2022 and are likely to continue impacting the Group’s results due to the uncertainty of the length of time of the pandemic.”
Referencing the recent closure of all Macau casinos for 12 days before reopening on 2 August, MGM noted that, “At the date of this announcement, most of our restaurants and bars and certain of our retail outlets are closed and we have significantly reduced our operating capacity with restrictions in place at present in response to the call from the Macau Government to control the transmission of COVID-19.”
The company also confirmed that it continues to implement safety measures on its gaming floors “such as limiting the number of seats available at each table game, slot machine spacing, temperature checks, mask protection and health declarations submitted through the Macau Health Code system.”
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