Aided by the addition of around 150 new gaming tables under its recently awarded 10-year gaming concession, MGM China completed a remarkable turnaround from the ravages of the COVID-19 pandemic in 2Q23 with both net revenues and Adjusted Property EBITDAR exceeding the same period in 2019.
Announcing the company’s financial results for the June quarter early Thursday morning (Asia time), MGM China reported net revenues of US$741 million – up 418% year-on-year and 5% on 2Q19 – while Adjusted Property EBITDAR of US$209 million reversed a US$52 million loss in 2Q22 and was 21% higher than the same period in 2019.
Likewise, Adjusted Property EBITDAR margin of 28.3% compared to 24.5% in 2Q19. MGM described its Macau EBITDAR result as a “near all-time record”.
The company’s revenue performance included gross gaming revenues that were 101% of 2Q19 levels, with main gaming floor table drop up 41% on pre-COVID levels to US$2.9 billion and win of US$626 million up 37%.
MGM China was the only one of Macau’s concessionaires to be granted an increase to its table cap under its new 10-year gaming concession, with 198 new tables awarded as of 1 January 2023. Around 150 are currently in play with the remaining to be deployed in the coming months.
Boosted by the added inventory, MGM Cotai reported revenue of HK$3.23 billion (US$414.0 million) in 2Q23, up from HK$459.7 million (US$58.9 million) a year earlier, with Adjusted Property EBITDAR of HK$976.3 million (US$125.1 million), reversing a HK$274.8 million (US$35.2 million) loss.
MGM Macau achieved revenues of HK$2.58 billion (US$330.7 million) versus HK$662.3 million (US$84.9 million) in 2Q22, with Adjusted Property EBITDAR of HK$771.0 million (US$98.8 million) also reversing a loss of HK$107.7 million (US$13.8 million).
The performance of Macau saw MGM China’s parent company record all-time high consolidated net revenue of US$3.9 billion, up 21% year-on-year, although net income fell from US$1.8 billion in 2Q22 to US$201 million due to a prior year gain on the sale of MGM Growth Properties LLC to VICI Properties Inc.
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