MGM China Reports 2025 First Quarter Results

Rhea-AI Summary

MGM China (MCHVY) reported strong Q1 2025 results, with net revenue reaching HK$8.0 billion, up 1% quarter-over-quarter and 139% of Q1 2019 levels. Adjusted EBITDA grew 11% sequentially to HK$2.4 billion, representing 146% of 2019 levels, with margin improving to 29.6%. The company increased its market share to 15.7% and maintained 93.3% occupancy. Property visitation was 177% of 2019 levels, while daily GGR reached 128% of Q1 2019. Mass gaming revenue recovered to 183% of pre-COVID levels, though VIP segment remained at 43%. MGM China updated its dividend policy to distribute up to 50% of annual profits semi-annually, up from 35%. The company maintains strong liquidity of HK$17.8 billion and received seven Forbes Travel Guide Five-Star Awards.

Positive

• Net revenue reached HK$8.0 billion, 139% of Q1 2019 levels
• Adjusted EBITDA grew 11% quarter-over-quarter to HK$2.4 billion
• EBITDA margin improved to 29.6% from 26.8%
• Market share increased to 15.7% from 15.5%
• Increased dividend distribution policy to 50% of annual profits from 35%
• Strong liquidity position of HK$17.8 billion
• High occupancy rate of 93.3%

Negative

• VIP gaming revenue still only at 43% of pre-COVID levels
• Overall revenue growth was modest at 1% quarter-over-quarter

Insights

Financial Analyst

MGM China shows impressive Q1 growth with 11% EBITDA increase, market share gains, and dividend policy expansion from 35% to 50% of profits.

MGM China's Q1 2025 results demonstrate strong sequential growth in a recovering Macau market. The company achieved HK$8.0 billion in net revenue, up 1% quarter-over-quarter and reaching 139% of Q1 2019 levels. More impressive is the adjusted EBITDA of HK$2.4 billion, representing 11% quarter-to-quarter growth and 146% of pre-pandemic performance.

The efficiency improvements are particularly noteworthy, with adjusted EBITDA margin expanding to 29.6% from 26.8% in the previous quarter. This margin expansion indicates better operational leverage and cost management as visitation increases.

MGM China is outperforming the broader Macau recovery, particularly in the mass market segment. While Macau's overall mass GGR recovered to approximately 110% of pre-COVID levels, MGM's mass GGR reached 183% of 2019 figures. This differential points to effective positioning in the mass market, which has shown stronger recovery than the VIP segment across Macau.

Market share gains provide further evidence of MGM's strengthening competitive position. Overall GGR market share increased to 15.7% from 15.5%, with mass market share at 15.8% and VIP market share rising significantly to 15.2% from 13.8%.

The update to MGM China's dividend policy represents a material improvement for shareholders. The company now intends to distribute up to 50% of anticipated consolidated annual profits, increased from 35% previously. This 43% increase in potential payout ratio signals management's confidence in sustainable cash flow generation.

MGM maintains a healthy financial position with total liquidity of approximately HK$17.8 billion, comprised of cash and available credit facilities. Strong occupancy rates of 93.3% indicate robust demand for MGM's properties.

The company's cultural initiatives, including the POLY MGM MUSEUM which attracted 500,000 visitors in just three months, align with Macau's diversification goals beyond gaming. The recognition of multiple Forbes Five-Star Awards reinforces MGM's premium positioning in the market.

Sequential Growth in Adjusted EBITDA and Market Share

HONG KONG, May 1, 2025 /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 the three months ended March 31, 2025 (the "Period").

The Group is pleased to see Macau's average daily visitor arrival in the first quarter up 12% quarter-to-quarter to 109,585, recovered to 95% of same period in 2019.

Gross gaming revenue (GGR) in Macau also saw sequential growth. Headline daily GGR rose 3% quarter-to-quarter to MOP641 million per day in the first quarter, represented 76% of same period 2019. Mass GGR (including slot) was estimated to have recovered to approximately 110% of pre-COVID levels. VIP GGR was estimated to be approximately 26% of the equivalent period. Sector EBITDA was estimated to reach nearly 80% of 2019 levels.

• MGM China continued to record sequential growth across segments. Property visitation for the Period was 177% of 2019. Daily GGR was 128% of the first quarter 2019. Mass GGR (including slot) and VIP GGR were 183% and 43% respectively of pre-COVID levels.
• Net revenue of the Group was HK$8.0 billion, up by 1% from previous quarter, reached 139% of first quarter 2019. 
• Adjusted EBITDA grew 11% quarter-to-quarter to HK$2.4 billion, represented 146% of the same period in 2019.
• Adjusted EBITDA margin for the Period also improved to 29.6% from 26.8% in previous quarter.
• MGM China saw overall GGR marketshare grew to 15.7% in the first quarter, up from 15.5% in the previous period. Estimated Mass (including slot) marketshare was 15.8% (24Q4: 15.7%) and VIP marketshare was 15.2% (24Q4: 13.8%).
• Average occupancy was 93.3% for the Period.
• MGM China maintained a healthy financial position. As of March 31, 2025, the Group had total liquidity of approximately HK$17.8 billion, comprised of cash and cash equivalents and available undrawn credit facilities.
• The Company has announced during the Period to update our dividend policy, intends to make semi-annual distributions in an aggregate amount per year that will not exceed 50% of the anticipated consolidated annual profits, increased from 35% previously. The Company may also declare special distributions from time to time in addition to the semi-annual distributions.

During the Period, MGM China has received again seven Forbes Travel Guide's Five-Star Awards, a recognition of our dedication to delivering exceptional experiences. MGM MACAU achieved its tenth consecutive Five-Star rating, Tria spas at both MGM MACAU and MGM COTAI earnt the distinction for the sixth consecutive year. The Company has garnered four Five-Star Awards across both properties for the fourth consecutive year: the Emerald Tower, the Skylofts and Sichuanese restaurant Five Foot Road at MGM COTAI, alongside the newly renovated Chinese Lingnan restaurant Imperial Court at MGM MACAU.

These achievements not only reinforce our leading position in Macau's hospitality sector but also strengthen Macau's appeal as a premier global destination for international travelers.

Kenneth Feng, President and Executive Director of MGM China said: "Our outstanding performance demonstrates our deep understanding of customers with continued improvements in service levels. It is also a testament to our team's continuous innovation in crafting compelling experiences for our customers."

In February, the POLY MGM MUSEUM has reached a milestone of receiving 500,000 visitors in just three months since it opened at MGM MACAU. The Museum showcases the brilliance of Chinese civilization to the global community with top-notch international exhibition standards, highlighting our devotion in developing cultural tourism as well as Macau's cultural essence as a world centre of tourism and leisure. The inaugural exhibition The Maritime Silk Road — Discover the Mystical Seas and Encounter the Treasures of the Ancient Trade Route has enjoyed widespread popularity and recorded a daily average over 10,000 visitors during the Chinese New Year period.

"We are delighted to see the diversification development of Macau. We are committed to bringing more unique and integrated experiences to our customers, to develop Macau into a global and diversified tourist destination through our concession commitments," 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.

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SOURCE MGM China

FAQ

What was MGM China's (MCHVY) revenue and EBITDA in Q1 2025?

MGM China reported net revenue of HK$8.0 billion and Adjusted EBITDA of HK$2.4 billion in Q1 2025, representing 139% and 146% of Q1 2019 levels respectively.

How has MGM China's market share changed in Q1 2025?

MGM China's overall GGR market share increased to 15.7% in Q1 2025, up from 15.5% in the previous quarter, with mass market share at 15.8% and VIP market share at 15.2%.

What changes did MGM China make to its dividend policy in Q1 2025?

MGM China updated its dividend policy to distribute up to 50% of anticipated consolidated annual profits semi-annually, increased from 35% previously.

How does MGM China's Q1 2025 performance compare to pre-COVID levels?

Property visitation was 177% of 2019 levels, daily GGR reached 128% of Q1 2019, with mass gaming at 183% of pre-COVID levels, though VIP gaming remained at 43%.

What is MGM China's current liquidity position as of Q1 2025?

As of March 31, 2025, MGM China had total liquidity of approximately HK$17.8 billion, including cash and cash equivalents and available undrawn credit facilities.