Gaming | MGM China records revenue growth of 3.35 percent

MGM Resorts International reported fourth-quarter net income of USD1.4 billion

MGM China Holdings has released its selected financial data for the three final months of last year as well as for the whole of 2017.

During 2017, the company recorded a revenue of HKD15.4 billion (USD1.97 billion), up 3.35 percent from HKD14.9 billion in the previous year. Meanwhile, adjusted EBITDA stood at HKD4.6 billion, edging up about HKD100 million from last year.

According to a statement from the Macau-based subsidiary, an adjusted EBITDA margin of 30 percent was maintained, the same as in 2016.

For the final quarter of last year, MGM China recorded year-on-year revenue growth of 16 percent to HKD4.3 billion and an adjusted EBITDA growth of 23 percent to HKD1.3 billion. In the same period, total gaming revenue in Macau was up by approximately 8 percent. Adjusted EBITDA margin for the quarter reached 30.2 percent, up by 170 basis points sequentially.

MGM Resorts International reported fourth-quarter net income of $1.4 billion, which came almost entirely from its massive one-time windfall from the nation’s new tax law.

The company also provided a clear picture of how the mass shooting at the Mandalay Bay casino-resort last fall affected its operations.

The Las Vegas-based company said it had a profit of $2.42 per share. Its earnings excluding the big tax windfall passed late last year amounted to less than a penny per share.

The casino and resort operator posted a revenue of $2.6 billion in the period, exceeding Wall Street’ forecasts.

“Despite the clear challenges we had in the fourth quarter, our earnings were relatively well-protected, and we finished the year strong,” MGM Chairman and CEO Jim Murren told investors. “This is the second time we talk to you since we experienced the great shock to our community in October, and yet our fourth quarter materialized as we expected as we discussed in our last call. In fact, it was a touch better.”

The reporting period started on October 1, the same day a high-stakes gambler killed 58 people and injured hundreds more after he shattered the windows of his suite on the 32nd floor of the Mandalay Bay and unleashed gunfire on a country music festival below. He then killed himself.

The company on Tuesday said it experienced a “short-lived uptick in cancellations” following the shooting. The company reported Mandalay Bay’s occupancy rate was 80.5 percent during the reporting period, down from 85.8 percent during the same quarter in 2016. MDT/AP

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