MGM China’s net revenue soared by 85% to approximately HKD9.4 billion in 2021, according to its recent earnings announcement.
The group had a turnaround to an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) figure of approximately HKD390 million, compared to a negative adjusted EBITDA of HKD1.4 billion in 2020. The gaming operator’s daily gross gaming revenue increased 81% year-on-year to approximately HKD29 million, about 40% of pre-pandemic levels, which is higher than the market recovery level.
Despite sustained choppiness in the operating environment driven by various travel restrictions and structural shifts at the high end, MGM China reached an all-time record 14% in market share. According to Bill Hornbuckle, CEO and president at MGM Resorts International, the official launch of the Emerald Suites at MGM Cotai during the quarter enhanced their hospitality offerings and is helping grow market share.
“We believe MGM China remains well-positioned for the market’s eventual rebound given its strengths in premium mass. Importantly, recent constructive developments around the concession renewals reaffirm our confidence in the government’s judicious and fair approach to the process,” Hornbuckle said on the recent earnings call. LV
