Key Moments:
- MGM China’s third quarter net revenue reached HKD8.51 billion ($1.08 billion), reflecting a 17 percent year-on-year increase
- MGM Cotai’s VIP table games turnover surged to HKD21.69 billion ($2.79 billion)
- The company captured a 15.5 percent market share and recorded all-time high segment-adjusted EBITDAR
Sustained Revenue Expansion Across Key Markets
MGM China Holdings delivered its strongest third-quarter performance to date, led by outstanding results in both its mass and VIP gaming segments. According to parent company MGM Resorts, the operator set a new record for segment-adjusted earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR), with its market share rising to 15.5 percent.
The company has also been recognized for its sustainability efforts for the fourth consecutive year, maintaining its inclusion in the Hang Seng Corporate Sustainability Benchmark Index.
Financial Highlights for Q3
| Metric | Q3 Value | Year-On-Year Growth |
|---|---|---|
| Net Revenue | HKD8.51 billion ($1.08 billion) | +17% |
| Main Floor Table Games Drop | HKD31.63 billion ($4.07 billion) | +18% |
| Casino Revenue | HKD7.36 billion ($947 million) | +18% |
| Segment-Adjusted EBITDAR | HKD2.21 billion ($283.99 million) | Record High |
MGM Cotai Drives VIP and Mass Growth
MGM Cotai played a pivotal role in boosting overall company growth during the third quarter. The property recorded a substantial increase in VIP table games turnover, rising from HKD15.04 billion ($1.94 billion) to HKD21.69 billion ($2.79 billion). The average win per VIP table climbed to HKD204.7 million ($26.34 million), compared to HKD104 million ($13.38 million) in the corresponding period of the prior year. The VIP win percentage increased from 3.3 percent to 4.4 percent, resulting in a gross table games win of HKD952.72 million ($122.6 million), up from HKD496.79 million ($63.93 million).
On the main floor, MGM Cotai saw a 30 percent increase in table games drop, totaling HKD17.37 billion ($2.24 billion). Despite a slight decrease in the win percentage to 26.2 percent from 29 percent, gross table games win rose to HKD4.54 billion ($584.23 million).
Total revenue at MGM Cotai grew to HKD5.11 billion ($657.6 million), up from HKD4.2 billion ($540.5 million). Adjusted EBITDA also improved to HKD1.45 billion ($186.6 million), compared to HKD1.18 billion ($151.85 million) in the prior year.
MGM Macau Performs Amid Shifting Segment Dynamics
At MGM Macau, overall revenue increased to HKD3.39 billion ($436.25 million), surpassing HKD3.04 billion ($262.52 million) in the third quarter of the previous year. Adjusted EBITDA advanced to HKD914.43 million ($117.67 million) from HKD801.51 million ($103.14 million).
However, VIP performance softened at this property. VIP turnover fell from HKD7.67 billion ($987 million) to HKD6.08 billion ($782.4 million), while VIP gross table games win decreased to HKD118.26 million ($15.22 million), from HKD230.13 million ($29.61 million). The VIP win percentage dropped to 2 percent, compared to 3 percent a year ago.
The main floor segment remained a positive driver. Table games drop expanded to HKD14.47 billion ($1.86 billion) from HKD13.53 billion ($1.74 billion), with win percentage edging up to 23 percent. This supported growth in main floor gross table games win, which reached HKD3.32 billion ($427.24 million), up from HKD2.83 billion ($364.18 million).
Recent Strategic Initiatives
In April, MGM China secured a revolving credit facility of HKD23.40 billion (approximately $3.02 billion) from a consortium of lenders.
- Author
Daniel Williams
