MGM China turns fortunes around

Macau casino operator MGM China (2282) turned to profit from a loss last year with an increase in market share.

It said it recorded adjusted earnings before interest, taxes, depreciation, and amortization of HK$389.88 million last year, compared with a negative adjusted EBITDA of HK$1.37 billion in 2020.

Daily gross gaming revenue jumped 81 percent year-on-year to around HK$29 million which was about 40 percent of the pre-pandemic level, according to a statement.

MGM Macau saw revenue up by 85 percent to roughly HK$5.2 billion and property EBITDA at about HK$564 million, compared to negative EBITDA of HK$384 million in 2020. Hotel occupancy rose to 79.8 last year from 35.60 percent in 2020.

MGM China grew its market share to 12.5 percent for the year 2021, compared to 9.90 percent a year ago. It once reached an all-time record of 14 percent during the fourth quarter of 2021.

It also said that it welcomes and supports the timely unveiling of the "Amendment to the Macao SAR Gaming Law No 16/2001" by the Macau authority.

"The bill provides details on the key aspects of the overall administrative procedures and timetable, outlining a framework and roadmap on the upcoming milestone of the retendering process which is critical to maintaining a healthy and sustainable development for the future of the gaming industry."

Lastly, it thanked the Macau government for providing guidance and assistance with the preparation of the tender submission.

Kenneth Feng, president, strategic and chief financial officer of MGM China, said: "The recent constructive developments during the process of retendering reaffirm our confidence in Macau government's judicious and fair approach to the process. Macau is an important part of our future and we will continue to work with the government on retendering."

Feng's comments came after Macau's legislature last month approved the first reading of the new gaming bill which has gone to a committee for review, after which it will return for its second and final reading. While Macau's new gaming bill keeps the number of licenses at six, they will now have 10-year tenures from the existing 20-year terms, with the possibility of extending them for up to three years.

The licenses of Macau's six operators are all due to expire in June.