MGM China net revenues fall 94% in Q3, expecting gradual recovery

Macao gaming operator MGM China announced Friday that its net revenues decreased by 94% year-on-year to US$47 million in the third quarter.

Macao gaming operator MGM China announced Friday that its net revenues decreased by 94 per cent year-on-year to US$47 million (MOP 375.26 million) in the third quarter.

The US company announced the figure in a statement to the Hong Kong Stock Exchange.

The gaming operator, which owns two casino-hotel resorts in Macao, also said that its adjusted property EBITDAR recorded a loss of US$96 million in the third quarter.

Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) measures a company’s financial performance.

Main floor tables games win and VIP table games win declined by 95 per cent.

Total revenue amounted to HK$363 million in the third quarter, a year-on-year decrease of 93.7 per cent.

Total revenue in the first nine months of the year stood at HK$2.73 billion, down by 83.9 per cent year-on-year.

A press release following the statement said that the company’s total third-quarter revenue rose 41 per cent quarter-to-quarter.

“While logistical hurdles and nucleic acid testing requirements continued to impact visitation levels, the market has been steadily improving, indicating a gradual recovery pace,” the press release said, adding that Macao’s gaming market was still under the severe impact of the COVID-19 pandemic in the third quarter. “The city and our properties continued to experience low visitation levels primarily driven by various travel restrictions and quarantine measures.”

The press released quoted Hubert Ziqi Wang, president and COO of MGM China, as saying: “We expect the rate of recovery will continue to be gradual, driven by the premium mass market.”

“We will continue to invest in strengthening our market position, and continue to believe in the long-term success of Macao,” Wang said.

(The Macau Post Daily/Macau News)