MGM China saw a 45% rise in its market-wide gross gaming revenue (GGR) for the first half (1H) of 2021, recording a total revenue of approximately HKD4.7 billion, nearly double the HKD2.4 billion recorded for the same period a year ago.
In a statement, the gaming operator acknowledged that the market began to stabilize in March, picked up momentum in April, and saw a solid Golden Week in May backed by a recovery in the premium mass market.
The group recorded adjusted EBITDA of approximately HKD200.4 million, compared to negative adjusted EBITDA of approximately HKD1.0 billion previously.
The market-wide GGR in the second-quarter improved sequentially by 7% from the first quarter. For the three-month period, MGM China posted revenue of HKD2.4 billion, up by 5% sequentially.
In a statement, the gaming operator stated that it has outperformed the market due to its “strength in premium mass business.”
The GGR in second quarter was 42% of levels in the fourth quarter of 2019, compared to market of 36%, maintaining its market share of approximately 11.2% in the second quarter.
“The group maintained a healthy financial position. As of June 30, 2021, the group had total liquidity of approximately HKD13.7 billion, comprised of cash and cash equivalent and undrawn revolver,” MGM stated.
Meanwhile, the group’s overall occupancy rate was 61.5%, up from 19.8% in the same period of 2020.
MGM considers the opening of Macau-Hong Kong another important variable in Macau’s recovery, adding that July was off to a better start when it saw visitation and business volumes pick up again. In July, market daily GGR grew 25% month-on-month to HKD264 million: approximately 35% of levels in the fourth quarter of 2019.
“We believe the rate of Macau’s recovery will continue to hinge on broader sentiment as well as the pace of vaccination rollouts throughout the region, which will ultimately lead to sustainable easing of travel restrictions,” said the group in the statement.
MGM remains confident in the city’s longer-term growth prospects, pledging to enlarge its footprint in the SAR.
Hubert Wang, president & CEO of MGM China, remarked, “We have finalized the construction and fittings of the Emerald Tower Suites at MGM Cotai that we believe the product will be well received by our premium customers.”
The group will officially open the 28 luxury suites, with floor areas of 128 square meters to 371 square meters.
“We believe our investments in premium product position us well for the broader recovery. At the same time, we will continue our efforts and strategy in diversification,” said Hubert Wang.
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