MGM records MOP5b in revenue in Q1 as sector recovers

MGM China has outperformed the casino market as the industry recovers. The group recorded a revenue increase of 131.2% year-on-year to HKD4.8 billion for the first quarter, reaching 84% compared to the first quarter of 2019.

The group reported an adjusted EBITDA of HKD1.4 billion, a significant improvement from the HKD46 million reported in the same period last year, reaching 87% of first quarter results from 2019.

“We saw market share reach a historical high of 15.4% during that period, compared to 13.3% a year ago and 9.4% in the first quarter 2019,” the group said in a statement.

Under the gaming concession contract that became effective from January 1, 2023, the group may operate a total of 750 gaming tables, compared with 552 gaming tables previously, representing a 36% increase.

All the tables were licensed as of the end of the first quarter. The gaming operator will open them and increase productivity as demand returns and they complete further refurbishments on the gaming floors.

Kenneth Feng, president, Strategic & Chief Financial Officer of MGM China said, “Our remarkable performance in Macau is a direct result of the meticulous preparation and well-executed plan put together by our team who ensured that we were ready to capture market share and drive results upon market reopening.”

“We think that the market will continue to recover as more and more gaming customers and leisure travelers make their first post-pandemic trip to Macau. Another source of recovery is the concerted efforts by concessionaires to attract overseas players,” he added.

Macau’s casino sector has gained traction last month, hitting the highest revenue since January 2020, with MOP14.7 billion. LV