MGM China Reports 2022 Third-Quarter Results
MGM China Holdings Limited reported significant challenges for Q3 2022 due to ongoing impacts from the COVID-19 pandemic. Total revenue fell to HK$687 million, down from HK$1.1 billion the previous quarter. The company experienced a negative adjusted EBITDA of HK$536 million, and occupancy dropped to 21%. However, MGM China is optimistic about Macau’s future, having submitted a bid for a new gaming concession amid signs of recovery as electronic travel permits for mainland residents were accepted starting November 1.
- MGM China maintains a healthy liquidity position with HK$9.9 billion in cash and equivalents as of September 30, 2022.
- The company holds a 13.2% market share in Macau's gaming industry for Q3 2022.
- Total revenue declined by 38% from Q2 2022, reflecting continued pandemic impacts.
- Negative adjusted EBITDA increased to HK$536 million from HK$382 million in the previous quarter.
- Visitor arrivals declined by 44% compared to Q2 2022, indicating severe visitor drop-off.
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Participated in Public Tender of Macau Gaming Concession Full Confidence in Macau Future Development
HONG KONG, Nov. 2, 2022 /PRNewswire/ -- MGM China Holdings Limited ("MGM China" or the "Company"; SEHK Stock Code: 2282) today announced selected unaudited financial data of the Company and its subsidiaries (the "Group") for the three and nine months ended September 30, 2022.
Macau and Greater China are under the adverse impact of the COVID-19 pandemic in 2022. A local outbreak in Macau at end-June led to safeguard measures, including a 12-day suspension of business activities in July and tightened travel and border controls during the quarter, have severely hampered Macau visitation.
Daily visitor arrivals for Macau and visitation from mainland China both decreased by
Headline GGR in the third quarter was down further hit the lowest level since the border opened. Market-wide GGR was down
- During the third quarter, MGM China recorded total revenue of approximately HK
$687 million , compared to HK$1.1 billion in the second quarter. The Group recorded negative adjusted EBITDA of approximately HK$536 million , compared to negative adjusted EBITDA of approximately HK$382 million previously. Occupancy was21% in the third quarter, compared to25.6% in the second quarter. - MGM China had market share of
13.2% for the third quarter. Our GGR in third quarter was11% of 19Q4 pre-pandemic levels, compared to8% market levels. Our team focuses on positioning our properties to capture opportunities in premium mass business and preparing for return of demand in the longer term while controlling cost. - The Group maintained a healthy financial position. As of September 30, 2022, the Group had total liquidity of approximately HK
$9.9 billion , comprised of cash and cash equivalent and undrawn revolver.
During the reporting period, Macau has made significant progress and set preparation for retendering of gaming concession. On July 1, the Macau Chief Executive approved Administrative Regulation 28/2022, which covers details of the bidding for gaming concessions, the qualifications of bidding companies and the criteria for granting. On July 28, the Chief Executive Dispatch was published and announced the opening of the public tender.
We have officially submitted in September our application for a new concession and we remain committed to supporting Macau's continual development as a world-class tourism and leisure destination. The Macau government is in the process of reviewing each of the concessionaire proposals and it is expected the granting of the new concession to be announced by the end of the year.
On the other hand, the China's National Immigration Administration has announced it accepts applications for electronic travel permits for mainland residents to travel to Macau, started November 1. This resumption includes group tour visas and Individual Visitor Scheme visas for all 49 eligible cities. The Administration further stated that Mainland Chinese's demand for travel to Macau has been increasing.
Kenneth Feng, President, Strategic & Chief Financial Officer of MGM China said: "We aim to support the Macau government in achieving its diversification goals and will continue to invest in innovative projects and programs that help the region flourish. We expect the travel relaxation measures will drive a gradual recovery in visitation. We look forwards to participating in the future development of Macau."
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/sub-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, 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
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