Positioned for market recovery Maintaining market share
HONG KONG, May 3, 2022 /PRNewswire/ — MGM China Holdings Limited (“MGM China” or the “Company”; stock code SEHK: 2282) today announced selected unaudited financial data for the Company and its subsidiaries (the “Group”) for the three months ended March 31, 2022 (the period”).
- Macau and Greater China continued to be severely impacted by the COVID-19 pandemic in 2022. We saw a pick-up in demand during Chinese New Year (CNY). Visit to Macau increased by 26% year-on-year during the six-day vacation period. MGM saw growth in rated mass players and table volume at both properties, while hotel occupancy reached 93% for MGM MACAU and 72% for MGM COTAI.
- However, with the widening of pandemic outbreaks on the continent China During the quarter, many Chinese provinces imposed lockdowns as well as tightened travel and border controls. Macau had also tightened requirements for inbound travellers. All of this led to a decrease in Macau gross gaming revenue (GGR).
- First-quarter market-wide GGR fell 25% year-on-year to MOP 17.8 billion. The daily GGR was 25% of the pre-pandemic level in the fourth quarter of 2019.
- MGM China recorded daily GGR in the first quarter at 35% of the 19Q4 level, outperforming the market thanks to our meticulous focus on service and product coupled with our strength in the premium segment. During the same period, we increased our market share to 13.3% from 11.5% a year ago.
- For the Period, MGM China recorded total revenue of approximately HK$2.1 billion (21T1: HK$2.3 billion). It had an adjusted EBITDA of approximately $46 million (21T1: HK$84 million).
- MGM MACAU recorded turnover of HK$1.2 billion (21T1: HK$1.3 billion) and an adjusted EBTIDA of HK$153 million (21T1: HK$170 million). It’s by far the best performing mass gaming property on the Peninsula, with the biggest mass table gain since May 2021. The hotel occupancy rate was 73% for the period.
- MGM COTAI achieved a turnover of HK$914 million (21T1: HK$981 million) and a negative adjusted EBITDA of HK$108 million (21T1: –HK$86 million). The hotel occupancy rate was 39% for the period.
- The Group has maintained a healthy financial situation. From March 31, 2022the Group had total liquidity of approximately HK$12 billionconsisting of cash and cash equivalents and an unfired revolver.
On 3rd of Marchthe Macao government has announced its intention to extend the duration of Macau six concession and sub-concession contracts for six months up to December 31, 2022 and invited concessionaires and sub-concessionaires to submit a formal extension request. On March 11MGM has submitted its request for extension along with a commitment to pay the premium to the Macau government.
Kenneth FengChairman, Strategic and Financial Director of MGM China said: “We will continue to work with the government on new tenders as Macau is an important part of our future. We look forward to continuing to promote the long-term development of Macau the gaming industry and supporting the government’s tourism and diversification goals for the region. »
The Group will continue to focus on understanding and meeting the needs of our customers. “We strive to continuously improve our arcades, product offering and services. We believe that once demand returns, we will be well positioned for growth, particularly in our premium mass and retail segments. mass,” said Kenneth Feng.
About MGM China Holdings Limited
MGM China Holdings Limited (HKEx: 2282) is a leading developer, owner and operator of gaming centers and accommodations in the United States. Greater China Region. We are the holding company of MGM Grand Paradise, SA which holds one of six gaming concessions/sub-licensees to manage casino gaming in Macau. MGM Grand Paradise, SA owns and operates MGM MACAUthe award-winning high-end integrated complex located on the Macau Peninsula and MGM COTAI, a contemporary luxury integrated resort in Cotai, which opened in early 2018 and has more than doubled our presence in Macau.
MGM China is majority-owned by MGM Resorts International (NYSE: MGM), one of the world’s leading hotel companies, operating a portfolio of resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage. For more information about MGM Resorts International, visit the company’s website at www.mgmresorts.com.