Macau concessionaire MGM China is celebrating its best year ever after reporting an all-time record for both fourth quarter and full year Adjusted Property EBITDAR.
According to information contained within parent company MGM Resorts International’s 4Q23 and FY23 financials results, released early Wednesday morning (Asia time), MGM China reported Adjusted Property EBITDAR of US$262 million in the December quarter, reversing a US$55 million loss in 4Q22 and 42% higher than was recorded in the corresponding period in 2019. This was achieved on net revenues of US$983 million – up 462% year-on-year and 35% higher than 4Q19.
“The current quarter was positively affected by the removal of COVID-19 related entry restrictions in Macau (on 8 January 2023) and an increase in visitation compared to the prior year quarter, as well as an increase in authorized tables in 2023,” the company said, referencing the additional 200 new gaming tables it was granted by the Macau government under its new 10-year gaming concession.
For FY23, MGM China saw Adjusted Property EBITDA reach US$867 million on an EBITDAR margin of 27.5%, reversing a US$203 million loss a year earlier and 18% higher than in 2019. Net revenues of US$3.2 billion were up 368% year-on-year and 9% higher compared to 2019.
Adding more detail in its supplemental earnings deck, MGM China revealed that combined gross gaming revenues revenues at its two Macau properties – MGM Macau and MGM Cotai – in 4Q23 had exceeded 2019 levels by 25%, including a 74% increase in main floor gaming win to US$877 million. For the full year, GGR was up just 1% but mass floor win of US$2.7 billion up 43% on 2019.
By property, MGM Macau recorded total revenue of HK$3.05 billion (US$390.0 million) and Adjusted Property EBITDAR of HK$824.7 million (US$105.5 million) in 4Q23, while MGM Cotai recorded total revenue of HK$4.62 billion (US$590.8 million) and Adjusted Property EBITDAR of HK$1.37 billion (US$175.2 million).
It was also a record-breaking quarter and year for MGM Resorts, with not only Macau fully recovering but Las Vegas setting all-time records of its own. As a result, MGM Resorts reported consolidated revenues of US$4.4 billion, net income attributable to MGM Resorts of US$313 million and consolidated Adjusted EBITDAR of US$1.2 billion in Q4.
“Our Las Vegas Strip Resorts and MGM China set new all-time records for full year and fourth quarter Adjusted Property EBITDAR,” said MGM’s CEO and President, Bill Hornbuckle. “Our premium positioning and offerings in Las Vegas enable us to capture incremental profit during major events such as the inaugural Formula 1 race and our first Super Bowl. 2024 is off to a winning start with the launch of our Marriott relationship as well as opportunities to increase our convention room nights and international mix.”
