MGM China, which runs both MGM Macau and MGM Cotai, has reported an Adjusted Property EBITDAR loss of US$55 million in the three months to 31 December 2022, much greater than the US$5 million in the last quarter of 2021 but better than the US$70 million loss in the September 2022 quarter.
The results formed part of parent company MGM Resorts’ financial results, which were published on Thursday, with net revenues across the group growing 18 per cent year-on-year to US$3.6 billion.
MGM’s Macau operations generated revenues of US$175 million in the December quarter, down 44 per cent year-on-year but up from just US$87 million in 2022’s third quarter.
Highlighting the company’s slow-but-steady recovery, MGM China reported a 199 per cent quarter-on-quarter increase in VIP table games turnover to US$980 million and a 9 per cent increase in VIP win to US$19 million. MGM also forecast a return to profitability in January 2023, driven by strong Chinese New Year results from the premium mass market.
Despite parent company MGM Resorts suffering a US$2 billion loss in the last three months of 2022, due primarily to a US$1.2 billion increase in non-cash amortisation expense relating to the MGM Grand Paradise gaming subconcession, the company’s CEO and President Bill Hornbuckle said he remained confident.
“We achieved our fifth consecutive quarter of record-breaking Las Vegas Strip Resorts Adjusted Property EBITDAR in the fourth quarter,” he said.
“What we accomplished in 2022 is nothing short of remarkable, and is a testament to our strategic plan, scale, brand strength, talented team, loyalty programme, and the diverse geographies and channels in which we operate. We believe that there is strong momentum in our business and our 2023 outlook remains bright, driven by a robust events calendar domestically, MGM China’s rapid year-to- date return to profitability and BetMGM’s ongoing improvement in 2023.”