MGM China release quarter four and full-year results

China Holdings Limited recently announced the selected financial data of the Company and its subsidiaries for quarter four of 2016 and the entire financial year.

The fourth-quarter results shows that the firm's net revenue increased by $1m when compared to the same period in 2015. During the last three months of 2016, main floor table games revenues had decreased by 2% year-on-year while an increase in hold percentage to 3.7% partially offset by a 16% decline in turnover saw its VIP table games takings rise by 7%.

MGM China Holdings Limited stated that its operating income for the final three months of 2016 came in at just over $72 million. The company’s fourth-quarter earnings before interest, tax, depreciation and amortization rose by 5% year-on-year to $138 million.

MGM China also reported a HK$2.3bn decline in full year revenue, taking HK$14.9bn for the entire year of 2016. Similarly, other figures fell below the previous year: adjusted EBITDA was a total of HK$4.5bn, 4.2% less than the previous year; net profit of 2016 totalled to HK$3.0bn, 3.2% below 2015; Basic Earnings per Share was 24% less than the previous year at HK$0.80.

Adjusted EBITDA margin increased 290 basis points from a year ago to 30.1%, while net profit margin grew 230 basis points to 20.4%. Contribution from main floor business continued to grow and reached approximately 80% of profit for the Year.

The Group reported that main floor table games drew in HK$7.7 billion, an increase of 2% from a year ago, yet VIP table revenue was down 26% year-on-year. While total gaming revenue in Macau declined by 3% from 2015, the mass gaming revenue grew by an estimated 6% year-on-year, but still grew less than the increase in market supply.

MGM Macau’s occupancy rate was 95.4% for the year, remaining a popular destination for tourists in Macau. While gaming occupancy has reduced, the company claim to be attracting new non-gaming customers. The company hope this trend continues at its new MGM Cotai, which will open in the second half this year.

MGM China’s Chief Executive Officer and Executive Director Grant Bowie comments: "With almost twice the square footage of MGM Macau, our new MGM Cotai property will allow us to capitalise on our expertise in providing exciting and diversified entertainment offerings. We are committed to continuing to bring extraordinary and memorable events to our properties in support of Macau Government's vision for diversification and developing the city as a world-class tourism destination".