MGM China reported an Adjusted Property EBITDAR loss of US$70 million for the three months to 30 September 2022, widening the US$52 million loss in Q2 and reversing its US$7 million EBITDAR gain during the same period last year.
According to figures contained within parent company MGM Resorts’ 3Q22 financial results, published early Thursday morning Macau time, MGM China’s revenues plummeted to just US$87 million for the quarter, down 70% both year-on-year and quarter-on-quarter.
MGM said the results were “negatively affected by COVID-19 related property closures and was more significantly impacted by travel and entry restrictions in Macau compared to the prior year quarter.”
While all gaming segments were impacted, VIP was hardest hit with VIP table games turnover down 52% from Q2 to US$328 million with win of just US$8 million. Main floor table games drop of US$352 million was 17% lower quarter-on-quarter with win falling 28% to US$75 million.
By property, MGM Macau on the peninsula saw revenues decline by 68.5% to HK$382.9 million (US$48.8 million) with an Adjusted Property EBITDAR loss of HK$227.1 million (US$28.9 million) while revenues at MGM Cotai – which briefly closed this week due to a dealer testing positive to COVID – fell 70.5% to HK$303.7 million (US$38.7 million). Adjusted Property EBITDAR loss was HK$308.4 million (US$239.3 million).
Macau’s struggles ultimately played their part in dragging MGM Resorts itself to a net loss of US$577 million, reversing last year’s US$1.4 billion Q3 gain despite the company recording its highest ever Las Vegas Strip results on a revenue and Adjusted Property EBITDAR basis.
Group-wide revenues climbed from US$2.7 billion in 3Q21 to US$3.4 billion with Strip revenues up 67% to US$2.3 billion and Adjusted Property EBITDAR by 58% to US$846 million.
The consolidated US$577 million loss was due to a US$1.2 billion increase in noncash amortization expense relating to a change in the useful life of the MGM Grand Paradise gaming sub-concession as a result of new Macau gaming laws and related changes, and due to the US$2.3 billion gain on consolidation of CityCenter in the prior year quarter, MGM said.
“Our outlook remains promising, with continued progress in our operations with BetMGM and development initiatives in New York and Japan as well as strong bookings into 2023 in our domestic operations,” said MGM Resorts CEO and President, Bill Hornbuckle.
“We remain focused on achieving our vision to be the world’s premier gaming entertainment company.”
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