MGM China saw its casino revenues recover to 84% of pre-COVID levels in the three months to 31 March 2023 – another clear sign that Macau’s recovery is now in full force.
According to information provided by parent company MGM Resorts in its 1Q23 results release on Tuesday morning (Asia time), MGM China recorded net revenues of US$618 million for the March quarter, up 130% on 1Q22 levels and just 16% lower than in 1Q19. Adjusted Property EBITDAR of US$169 million compared with an Adjusted Property EBITDAR loss of US$26 million in the same period last year, and represented 88% of the company’s 1Q19 result.
The recovery was driven by the mass gaming segment, with MGM China revealing main floor table drop was 9% higher than in 1Q19, with win up 18% to US$523 million. The company was, however, aided by the addition of 200 new gaming tables allocated to it by the Macau government as part of its new 10-year concession, of which half are currently in use, the company said.
Likewise, Macau market share climbed to a record 15.4% for the quarter, up from 14.3% in the December 2022 quarter and from 9.4% in 1Q19.
By property, MGM Macau saw revenues grow 98.5% year-on-year to HK$2.34 billion (US$298.1 million) and Adjusted EBITDA by 353% to HK$694.8 million (US$88.5 million), while MGM Cotai recorded a 173% increase in revenues to HK$2.50 billion (US$318.5 million). Adjusted EBITDA at the Cotai property was HK$718.1 million (US$91.5 million), reversing a HK$107.5 million (US$13.7 million) loss in 1Q22.
Macau’s recovery provided a major boost to the results of parent company MGM Resorts, which saw consolidated net revenues rise by 36% year-on-year to US$3.9 billion. Net income attributable to MGM Resorts was US$467 million, compared to net loss attributable to MGM Resorts of US$18 million in the prior year quarter.
“MGM Resorts is executing across all of its geographies and channels with record first quarter Las Vegas Strip Adjusted Property EBITDAR, consistently strong Regional Operations profit, MGM China’s swift return to profitability, and BetMGM’s anticipated positive earnings later this year,” said MGM Resorts CEO and President, Bill Hornbuckle.
“Beyond our continued exceptional results, our future growth and expansion plans are promising. In April, we achieved the landmark approval of MGM’s development plan in Osaka, Japan. The application process in New York is progressing and our global digital expansion plans remain a major focus as we continue to grow LeoVegas and the MGM digital brand worldwide.”
“With US$4.5 billion of cash on the balance sheet, we expect to continue to return capital to our shareholders through ongoing stock repurchases and pursue long-term growth opportunities through international digital acquisitions and the development opportunities we have with Japan and New York.”
