MGM China has reported revenue of US$268 million in the three months to 31 March 2022, down 9% year-on-year and 63% lower than the same period in 2019. It was also 15% lower than 4Q21, with its Macau properties – MGM Cotai and MGM Macau – still heavily impacted by travel and entry restrictions into the SAR.
Adjusted Property EBITDAR was a loss of US$26 million, compared with EBITDAR of US$5 million in 1Q21 and US$11 million in Q4. MGM China said the quarter included a charge of US$18 million related to “litigation reserves”, which the company recently revealed was linked to potential junket debts following the collapse of the Macau junket industry in recent months.
In that regard, VIP table games turnover fell 45% quarter-on-quarter to US$963 million with win down 55% to just US$23 million. Main floor table games drop was 6% lower than 4Q21 at US$1.1 billion with win down 9% to US$239 million.
Peninsula property MGM Macau performed better than its Cotai peer in the mass segment, producing main floor table games win of HK$1.07 billion (US$136.3 million) and slot machine win of HK$132.0 million (US$16.8 million) versus HK$798.2 million (US$101.7 million) and HK$62.3 million (US$7.9 million) respectively at MGM Cotai.
The 1Q22 results of MGM China, reported by parent company MGM Resorts International, were in stark contrast to the group’s consolidated results, which saw revenue soar from US$1.6 billion a year earlier to US$2.9 billion – aided by the inclusion of Aria which it fully acquired in July 2021.
Las Vegas revenues climbed by 205% year-on-year to US$1.7 billion and Adjusted Property EBITDAR by 449% to US$594 million.
However, MGM still reported a group-wide net loss of US$18 million due to its ongoing Macau woes. The result compared with a loss of US$332 million in 1Q21 and income of US$31 million in 1Q19.
