MGM China Chairperson and Executive Director Pansy Ho says the company’s surprise decision to resume the payment of dividends highlights its confidence in the future of Macau.
Ho’s comments, part of her Chairperson’s Statement in MGM China’s Annual Report, released overnight, come after the company last month declared a final dividend of HK$0.243 per share and a Special Dividend of HK$0.104 per share for a total of HK$0.347 per share.
The resumption of dividends caught industry analysts by surprise with JP Morgan writing that they had come a year earlier than expected given that most concessionaires, other than Galaxy Entertainment Group, are still paying down debts accrued during the COVID-19 pandemic.
Wynn Macau Ltd has also resumed payment of dividends, joining Galaxy and MGM as the only three concessionaires to do so.
Nevertheless, Ho described 2023 as a “fruitful and rewarding year” for MGM China, adding that “The resumption of dividends demonstrates our confidence in the future of Macau and MGM China, along with our commitment on bringing return on investment to shareholders.”
MGM China reported a 369% year-on-year increase in net revenues in 2023 to HK$24.7 billion – also representing 108% of 2019 levels – with mass GGR reaching 134% of pre-COVID.
Adjusted EBITDA of HK$7.2 billion was also 117% of 2019 levels as the company grew its market share from 9.5% in 2019 to 15.2%.
Ho noted that the addition of 198 new gaming tables under the 10-year concession it signed in December 2022 – taking its total table inventory to 750 tables – was a key reason for the strong results.
“The substantial increase in business capacity prepares our way for future growth,” she said. “It boosts productivity of the gaming floors, hence enhancing our product and experience offerings.”
MGM China’s parent company, MGM Resorts, is due to release its results for the March 2024 quarter, including those for Macau, on the morning of Thursday 2 May (Asia time).
