MGM China shows 900% casino revenue growth for Q3
While MGM Resorts overall saw a consolidated net revenue increase of 16% for $4.0bn, it was MGM China that saw the most notable growth metrics.
MGM Resorts subsidiary MGM China saw casino revenue growth of 900% and an overall net revenue increase of 829% in Q3 2023. Its net revenue, totalling $813m, puts MGM China’s Q3 2023 earnings at a 10% increase compared to Q3 2019, showing that the Macau gambling market may be returning to full health following the Covid-19 pandemic.
Macau has shown significant recovery in 2023, with the area reporting its October 2023 revenue to be the highest so far this year, and its closest to pre-pandemic levels yet. Other operators in Asia, such as Melco, have also reported a positive Q3 2023, with Melco bringing in a total quarter operating revenue of $1.02bn.
At MGM China, however, recovery has gone beyond meeting pre-pandemic levels and has now succeeded them. Despite this, stock prices are slightly down following the Q3 results, with prices down 4.1% from 9 November start-of-day trade.
A breakdown of key gaming statistics at MGM China shows significant growth in casino revenue from this time last year, up 900% for a total revenue of $714m. Main floor table games drop was also up 838%, signifying just how much engagement has increased at MGM China following the lifting of many Covid-19 restrictions.
Adjusted property EBITDAR clocked in at $226m in Q3 2023 – a positive figure, compared to last year’s property EBITDAR loss of $70m in Q3 2022. Notably, this adjusted property EBITDAR is also a 23% increase from Q3 2019, further solidifying MGM China’s Covid-19 recovery.
The current market capitalisation of MGM China is HK$37.24bn (US$4.77bn).
On MGM China’s performance, MGM Resorts President and CEO Bill Hornbuckle said:
“We started the quarter with great momentum across our businesses. … MGM China is performing exceptionally well, and we have a pipeline of development opportunities including New York and Japan alongside the growth and development of our international digital business.”
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