MGM China Reports 2024 Interim Financial Data

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Jul 31, 2024, 18:15 ET

Adjusted EBITDA up 57% Year-on-Year

Market Share Reached 16.5%

HONG KONG, July 31, 2024 /PRNewswire/ -- MGM China Holdings Limited ("MGM China" or the "Company"; SEHK Stock Code: 2282) today announced the selected unaudited financial data of the Company and its subsidiaries (the "Group") for second quarter and the first half of 2024 (the "Period").

The Group is pleased to see Macau continue to grow. Total visitor arrivals in first half of year increased 43% year-on-year to 91,868 per day. The visitation recovered to 82% of first half 2019.

Gross gaming revenue (GGR) in Macau was up 41% from same period in last year to MOP 625 million per day, represented a 76% recovery of first half 2019. In addition, mass gaming revenue grew 45% compared to a year ago, represented 111% of 2019. The continuous growth of mass market has boosted industry EBITDA to have recovered to an estimated 80-85% of 2019 pre-COVID levels.

MGM China continued to outperform the market amid of industry recovery. Property visitation was up 85% year-on-year or represented 153% of 2019. Net revenue grew by 52% year-on-year to HK$16.2 billion for the Period, reached 144% of same period in 2019.
The Group reported adjusted EBITDA of HK$ 4.9 billion for the Period, grew by 57% from a year ago. Adjusted EBITDA surpassed pre-COVID level at 161% of same period in 2019.
We are glad to see market share further climbed to 16.5% for the Period, from 14.9% a year ago and 9.5% in 2019. MGM COTAI market share was 9.8% and MGM MACAU market share was 6.7%.
Adjusted EBITDA margin for the Period reached record high of 30.5%, compared to 29.7% for same period in 2023 and 27.2% in 2019. It was attributed to our mass-focused business and continuous improvement in operational efficiency.
Average occupancy was 93.9% for the Period (1H23: 91.7%).
On a property basis, MGM COTAI recorded revenue of HK$9.5 billion (1H23: HK$5.7 billion) and an adjusted EBITDA of HK$2.8 billion (1H23: HK$1.7 billion).
MGM MACAU had revenue of HK$6.8 billion (1H23: HK$4.9 billion) and an adjusted EBITDA of HK$2.1 billion (1H23: HK$1.5 billion).
On a quarterly basis, Market daily visitation in second quarter 2024 reached 79% of pre-COVID levels. Daily GGR reached 77% of 19Q2. Mass GGR was estimated to be 111% of 19Q2.
MGM China, in the second quarter, saw property visitation exceeded pre-COVID levels to 156% of same period in 2019. Daily GGR was 134% of 19Q2. Mass GGR was 185% of same period in 2019.
Revenue of the Group was HK$8.0 billion, 144% of 19Q2. Adjusted EBITDA was HK$2.4 billion, 168% of 19Q2. Adjusted EBITDA margin was 30.7% (19Q2: 26.3%).
The Group maintained a healthy financial position. As of June 30, 2024, the Group had total liquidity of approximately HK$16 billion, comprised of cash and cash equivalents and undrawn revolver.

With a guest-centric focus, MGM is awarded in February seven Five-Star awards by Forbes Travel Guide 2024. This demonstrates our leading position in the hospitality industry and its commitment to providing the finest service and resort amenities.

During the Period, MGM China has proudly delivered a series of non-gaming events and excitements to Macau. We have hosted in January an outdoor concert with Bruno Mars, the 15-time Grammy Awards-winner. We had also presented with world-renowned musician Tan Dun his symphonic masterpiece Buddha Passion at the MGM Theater at MGM COTAI. As a supporter of cultural tourism, MGM has showcased an exhibition with renowned Chinese contemporary artist Ren Zhe in his first-ever solo Macau show, MGM X Ren Zhe – 'Legends of Chivalry' Art Exhibition, featuring art pieces of classic characters from Jin Yong's martial arts novels.

Joining the Macao Government's initiative to expand international market reach, the Group hosted in June its first large-scale overseas promotional campaign in Bangkok, Thailand and participated in the Experience Macao roadshow in Bangkok organized by the Macao Government Tourism Office, to attract more visitors from Southeast Asia.

Kenneth Feng, President and Executive Director of MGM China said: "We are delighted to see our continuous growth and outperformance driven by our deep understanding and customers and our ability to adapt swiftly to their preferences.

"We are committed to bringing more unique and integrated experiences to our customers, to align our offerings with the Macau Government's vision to develop the city into a global and diversified tourist destination," said Kenneth Feng.

About MGM China Holdings Limited

MGM China Holdings Limited (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 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 MGM COTAI, a contemporary luxury integrated resort in Cotai, which opened in early 2018 and more than doubles our presence in 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, ARIA, MGM Grand, Mandalay Bay and Park MGM. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.

SOURCE MGM China