MGM China sets record with highest-ever adjusted EBITDA in Q2

MGM China Holdings reported its highest-ever adjusted Earnings before interest, Taxes, Depreciation, and Amortisation (EBITDA) for the second quarter (Q2) of 2025, as its market share in Macau rose to 16.6%.

The company posted an adjusted EBITDA of HKD2.51 billion, marking a 3% increase year-on-year. Total revenue rose 9% to HKD8.67 billion.

According to data from MGM Resorts International, MGM China’s EBITDA climbed approximately 172 basis points to 28.9% in Q2. The property driving this success was MGM Cotai, whose revenues increased by 12% to HKD5.28 billion, and adjusted EBITDA rose to over HK$1.53 billion.

The surge was especially notable in VIP table games, where turnover soared 39% year-on-year to HK$32.7 billion and VIP gross wins nearly doubled to HKD1.13 billion.

Meanwhile, its property in the Peninsula, MGM Macau, experienced a 4% increase in total revenue to HKD3.38 billion, but its adjusted EBITDA declined slightly by under 1% to HKD975.7 million.

In this property, the VIP table games segment declined, with turnover falling 35% to just under HKD5.4 billion and gross win dropping to HKD158.5 million.

Meanwhile, main floor table game turnover grew 4% to HKD14.8 billion, with gross win up 11% to HKD3.27 billion.

MGM Resorts International CEO and President, Bill Hornbuckle, commented on the quarter, saying, “MGM Resorts’ operational scale and diversity delivered solid growth in the second quarter, with consolidated results increasing year over year. This performance was driven by accelerating EBITDA growth at the BetMGM venture and record results out of our regional operations and MGM China. Our outlook on the business remains bright.”

MGM Resorts CFO, Jonathan Halkyard, underscored the company’s focus on premium players as a “simple strategy but one that is difficult to execute.” The company noted market share growth every month throughout the quarter, with rising visitation and player counts at both MGM Cotai and MGM Macau.

“MGM Resorts remains on track to implement over USD150 million (approximately MOP1.2 billion) of EBITDA enhancements within the year,” said Halkyard.

Kenneth Feng, MGM China’s President and Executive Director, noted during the call that MGM China continued to see “a very strong trend” in performance during July. “Our performance is pretty robust. We are seeing strong volumes across nearly all business segments, as well as solid market share and margins. We are expecting a promising summer,” he said.

Citi Analysts Praise MGM Chinaís Performance

Citigroup analysts George Choi and Timothy Chau highlighted MGM China’s competitiveness and prudent expenditures as key to its success. In a recent memo, they noted that the company’s EBITDA margin of 29% aligned well with management’s guidance and praised the disciplined approach to player reinvestments.

Despite competitive new launches such as Sands China’s Londoner Grand and Galaxy Entertainment’s Capella hotel in Macau’s market, MGM China’s EBITDA of HKD2.51 billion exceeded forecasts by 5%.

According to MGM’s management, business momentum remained strong in July 2025, with all business segments recording robust transaction volumes.

Citibank raised MGM’s target price from HKD17.1 to HKD18 and maintained a “Buy” rating.

Expanding offerings

In addition to its financial achievements, MGM China has expanded its physical offerings.

The company recently opened 28 guest villas at MGM Macau and is converting 63 standard rooms into suites at MGM Cotai. Citibank expects that the new suites and villas, which MGM will open by mid-2026, will help it maintain its market share at least.

July 2025 also saw the soft opening of Alpha Club, “an ultra-high-end gaming venue with 20 tables” at MGM Macau, targeting premium mass market customers.

On the topic, Feng emphasized, “Macau is not only for event-driven customers that come here for concerts, we are seeing more and more customers coming here for the refreshed appearances and the quality products and services.” He added, “We are focused on continuously refreshing our products and services.”

The Alpha Club is scheduled for an official opening during this year’s National Day Golden Week that will take place in early October.