MGM China Reports Slight Revenue Increase In 4Q21
Macau concessionaire MGM China saw net revenues rise 3% year-on-year and 9% sequentially to HK$ 2.45 billion (US$ 315 million) in the three months to 31 December 2021, although Adjusted EBITDA fell 88% to HK$ 89 million (US$ 11.4 million) due to a US$ 23 million bonus reversal in the prior year quarter and a US$ 13 million increase in bad debt expense.
In publishing its 4Q21 financial results early Thursday morning (Asia time), parent company MGM Resorts noted that results continued to be impacted by travel and entry restrictions in Macau due to the COVID-19 pandemic, with MGM China’s net revenues still 57% lower than the fourth quarter of 2019.
Despite those restrictions, the company reported combined casino revenue at MGM China’s two Macau integrated resorts, MGM Macau and MGM Cotai, of US$ 273 million, slightly up from US$ 267 million a year earlier.
This was primarily from the mass market segment, where mass floor table games win increased from US$ 243 million to US$ 262 million. By comparison, VIP table games revenue fell from US$ 75 million to US$ 51 million, mirroring a 21.5% decline in VIP turnover to US$ 1.76 billion.
By property, MGM Macau reported a 3.6% year-on-year increase in net revenues to HK$ 1.31 billion (US$ 168 million) while MGM Cotai saw revenues rise 4.0% to HK$ 1.15 billion (US$ 147 million).
MGM China’s subdued results were in stark contrast to MGM Resorts’ US operations, which included record Las Vegas Strip Adjusted Property EBITDAR and a 277% year-on-year increase in Strip revenues to US$ 1.8 billion.
Group-wide, consolidated net revenues grew 105% to US$ 3.1 billion with net income of US$ 131 billion reversing a 4Q20 loss of US$ 448 million.