Shares of MGM China (2282) jumped 7 percent after recording adjusted property earnings before interest, taxes, depreciation, amortization and restructuring or rent costs of US$378.3 million (HK$2.95 billion) in the first half, compared to a negative US$77.7 million a year ago.
Its shares soared by 7 percent to HK$10.88 yesterday.
Meanwhile, MGM's adjusted property EBITDAR for the second quarter exceeded 21 percent compared to the pre-pandemic level in 2019, reaching US$209 million. The company described the result as a near all-time record.
In the first half of 2023, the Macau casino operator witnessed a significant increase in total revenue, reaching US$10.6 billion, which was 2.3 times higher than the previous year, driven by a remarkable rebound in visitor numbers from China surpassing pre-pandemic levels.
Under its new concession contract, which came into effect earlier this year, MGM is now allowed to operate a total of 750 gaming tables, representing a 36 percent increase from the previous 552 tables.
With these additions, the casino has gained a 5.4 percent market share, while MGM Macau's market share stands at 6.9 percent and MGM Cotai's at 8 percent.
However, the costs during the period also increased from last year. MGM China corporate expense was US$15 million for the six months ended June 30, 2023, an increase of 87.5 percent year-on-year.
Inflation-driven operating costs have also risen, especially as casino operators invest in non-gaming segments such as dining and retail to lure visitors, reports Reuters.
