MGM China Holdings Limited showcases a significant rebound in its Q3 2023 financials, surpassing pre-COVID performance metrics and setting new standards in Macau’s thriving tourism and gaming sectors.
HONG KONG – MGM China Holdings Limited announced the selected unaudited financial data of the company and its subsidiaries for the three and nine months ended September 30, 2023.
The group sees a solid recovery in Macau since the beginning of the year. Macau saw average daily visitor arrival for the third quarter reach 90,025, up by 22% from the second quarter, recovered to 84% of pre-COVID levels of the same period in 2019.
Visitation recovery has boosted gross gaming revenue (GGR). Industry GGR rose 7% quarter-to-quarter to MOP531 million per day, representing 69% of pre-COVID levels, compared to 62% recovery in the second quarter. Industry EBITDA in the third quarter was recovered to an estimated 80% of the same period in 2019.
- MGM China continues to outperform industry recovery and grow from 2019. Third-quarter property visitation was 121% of the same period in 2019. Daily GGR was 101% and mass GGR (including slot) was 137% of 2019.
- Net revenue of the Group grew by 10% to HK$6.4 billion for the quarter compared to 2019.
- The Group reported adjusted EBITDA of HK$1.9 billion for the quarter, 122% of 2019, consistently outperforming the market.
- MGM China maintained market share at 14.3% for the quarter, up from 9.5% in FY2019. MGM MACAU market share was 6.4% and MGM COTAI market share was 7.9%.
- Adjusted EBITDA margin for the quarter also grew 280 basis points to 29.6% from 26.8% in 2019, with a mass-focused business and continuous improvement in operational efficiency.
- On a property basis, MGM MACAU recorded revenue of HK$2.9 billion for the quarter (3Q19: HK$2.9 billion) and an adjusted EBITDA of HK$880.5 million (3Q19: HK$855.6 million).
- MGM COTAI had revenue of HK$3.5 billion for the quarter (3Q19: HK$2.8 billion) and an adjusted EBITDA of HK$1.0 billion (3Q19: HK$692.9 million).
- The Group maintained a healthy financial position. As of September 30, 2023, the Group had a total liquidity of approximately HK$18.2 billion, comprised of cash, cash equivalents and undrawn revolver.
The Group experienced a robust Golden Week in October, during which market GGR in the month reached a post-pandemic high of MOP19.5 billion, reaching 74% of 2019’s and implying a daily run-rate of MOP629 million.
MGM China market share rose to 15.5% in October, and 14.8% year to date.
Kenneth Feng, President and Executive Director of MGM China said, “We are excited about the recovery in Macau, along with the diversification development of the city. We will continue investing in the gaming floor to enhance table yield. At the same time, we are committed to bringing in more unique integrated tourism experiences to attract international visitors.”
During the quarter, MGM had hosted a variety of exciting events in Macau. In August, MGM collaborated with Robb Report Hong Kong to present MGM x RR1 Culinary Masters Macau for a four-day deluxe dining extravaganza – where a team of international and local award-winning chefs came together to create gourmet meals featuring the world’s top wines and delicacies for international guests from over 10 countries. The event fully demonstrates Macau’s unique position as a UNESCO Creative City of Gastronomy and its cultural attributes fusing Chinese and Western elements.
Also in August, Asian renowned band Mayday dazzled in a one-night exclusive concert at MGM COTAI with their megahits in their first outdoor performance in Macau. The concert took place against the stunning backdrop of MGM COTAI’s jewelry box design, creating a mesmerizing night view of the skyline, as another testament to MGM’s dedication to providing diverse cultural tourism experiences.
As a supporter of cultural tourism, MGM again collaborated with world-renowned Portuguese artist Joana Vasconcelos to present a large-scale art installation Valkyrie Miss Dior at MGM COTAI. While at the MGM Theater, the Group presented the signature exhibition titled To Infinity and Beyond, which drew on the avant-garde concept of “ART-TECH-TAINMENT” to showcase artworks created since the 1960s by prestigious Chinese contemporary artists Hsiao Chin, as an initiative to support the city-wide international event Art Macao organized by the Macao SAR government.
At MGM MACAU, we hosted an art appreciation exhibition with Buccellati in September at the Grande Praca. The Timeless Beauty with Century-Old Craftsmanship exhibition showcased some exquisite collections and demonstrated the exceptional craftsmanship of the refined Italian jewelry maker to the public in Macau.
“MGM has always trailblazed the innovative fusion of ‘Art+Tourism’, creating art and cultural programs of international standard that seamlessly integrate into our daily lives. We are committed to developing Macau into a global and diversified tourist destination through our concession commitments,” said Kenneth Feng.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor’s degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.