EBITDA Margin Increased 290 basis points to 30.1%
HONG KONG, Feb. 16, 2017 /PRNewswire/ -- MGM China Holdings Limited ("MGM China" or the "Company") (SEHK Stock Code: 2282) today announced the selected financial data of the Company and its subsidiaries (the "Group") for the three months (the "Quarter") and 12 months ended December 31, 2016 (the "Year").
- During the Year, MGM China recorded total revenue of HK$14.9 billion (2015: HK$17.2 billion). The Group recorded adjusted EBITDA of HK$4.5 billion (2015: HK$4.7 billion) and net profit of HK$3.0 billion (2015: 3.1 billion). Basic Earnings per Share was HK$0.80 (2015: HK$0.82).
- The Macau gaming market stabilized during the year. While total gaming revenue in Macau declined by 3% from previous year, the mass gaming revenue grew by an estimated 6% year on year, but still grew less that the increase in market supply. Despite this, the Group managed to improve its operation efficiency and margins.
- Adjusted EBITDA margin increased 290 basis points from a year ago to 30.1%, while net profit margin grew 230 basis points to 20.4%. This was driven by a combination of our disciplined cost savings efforts and a favorable shift in mix between mass and VIP. Contribution from main floor business continued to grow and reached approximately 80% of profit for the Year.
- For the Year, the Group recorded main floor table games win of HK$7.7 billion, an increase of 2% from a year ago, despite disrupted from the renovation of food and beverage outlets and remodeling of gaming floor at MGM MACAU during the Quarter. VIP table win was down 26% year on year.
- The Company proposed a final dividend of HK$0.160 per Share. Including the interim dividend of HK$0.119 cents per Share declared during the Year, total dividend reached HK$0.279 cents per Share, representing 35% payout ratio.
- MGM MACAU occupancy rate was 95.4% for the Year. The Group believes the property remains a popular and premium destination for high quality customers and while gaming occupancy has reduced, we have been successful in attracting new non-gaming customers.
- To maintain its competitiveness, we have been undergoing a remodeling of main floor at the property including creating additional retail space and upgrading our food and beverage offerings. Two new dining outlets at MGM MACAU were launched earlier in 2017. The new restaurants provide authentic and diversified casual dining experience to our local and Chinese customer base. We also opened a new gaming area on the main floor to extend our offerings for our premium mass customers.
- MGM China is committed to support our team members and the local community. Our team delivered nearly 270,000 hours of training in 2016, representing 45 hours for each team member, preparing for promotion and training of our staff leading up to the opening of MGM COTAI. We also grew our business with local small and medium sized enterprises by MOP155 million.
- The Group is working at full speed to prepare for the opening of MGM COTAI in the second half this year. The majority of all building enclosure works for the tower and the podium have completed including exterior signage on the towers and the erection of the MGM Lion at the north end of the property. Principal efforts across both the podium and the hotel towers continue to be building systems testing and commissioning in parallel with fit-out activities related interior finishes.
Grant Bowie, Chief Executive Officer and Executive Director of MGM China said: "With almost twice the square footage of MGM MACAU, our new MGM COTAI property will allow us to capitalize on our expertise in providing exciting and diversified entertainment offerings. We are committed to continuing to bring extraordinary and memorable events to our properties in support of Macau Government's vision for diversification and developing the city as a world-class tourism destination."
About MGM China Holdings Limited
MGM China (HKEx: 2282) is a leading developer, owner and operator of gaming and lodging resorts in the Greater China region. We are the holding company of MGM Grand Paradise, SA which holds one of the six gaming concessions/subconcessions to run casino games in Macau. MGM Grand Paradise, SA owns and operates MGM MACAU, the award-winning premium integrated resort located on the Macau Peninsula and is developing a second resort, MGM COTAI which is expected to more than double our presence in the world's largest gaming market, Macau.
MGM China is majority owned by MGM Resorts International (NYSE: MGM) one of the world's leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.
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SOURCE MGM China Holdings Limited