MGM China records net revenue of HKD5.76b in Q1

MGM China Holdings Ltd recorded an earnings increase of 26.8% to HKD1.62 billion before interest, taxation, depreciation and amortization (EBITDA) in the first quarter of the year.

According to the gaming operator, net revenue was HKD5.76 billion in the period of January 1 to March 31, representing a 23.5% increase year-on-year.

The boost was reportedly fueled by MGM Cotai’s performance, which opened in February 2018, with the the property adding 25 new-to-market tables in  January, offering gamblers more options.

In the fourth quarter of last year, MGM China’s adjusted EBITDA grew 9.1% to HKD1.41 billion, compared with nearly HKD1.29 billion a year earlier.

MGM Macau achieved an adjusted EBITDA of HKD1.1 billion in the first three months of the year, a sequential growth of 13%.

The adjusted EBITDA of the gaming operator’s second property, MGM Cotai, was also up 17% quarter-on-quarter, to HKD544 million.

As cited in a press release, Jim Murren, chief executive and chairman of MGM Resorts, said, “MGM Cotai continued to ramp [up] and contributed to the […] growth in adjusted property EBITDA at MGM China.”

“During the quarter, we were very pleased to receive the extension to our Macau sub-concession to June 2022. We remain deeply committed to Macau’s continued evolution into an international leisure and tourism destination,” he added.

The results were released earlier this week and were filed under international financial reporting standards (IFRS), the system MGM China used as a Hong Kong-listed company.

Meanwhile, Sanford C. Bernstein Ltd noted that the gaming operator’s first quarter results “beat street estimates with adjusted property EBITDA […] 6% above consensus.”

The brokerage believed that the results were due to “largely to high VIP hold at MGM Cotai.”