Staff reporter
MGM China (2282) reported net revenue of US$268 million (HK$2.09 billion) in the first quarter, a 9 percent drop from an earlier year but a decrease of 63 percent compared to the first quarter of 2019.
The drop was still due to the travel and entry restrictions in Macau, the casino operator said.
Earnings before interest, taxes, depreciation and amortization over the same period fell 45.8 percent to HK$45.75 million.
The results came as MGM Resorts International, the parent of MGM China, offered to acquire Swedish online gaming company LeoVegas for about US$607 million, paving the way for the US casino operator to expand its presence in Europe.
MGM floated a recommended public tender offer for 61 crowns (HK$20.46) in cash per share, which represents a 44.2 percent premium to LeoVegas's last closing price of 42.32 crowns.
MGM has been looking to capitalize on the sports-betting arena through its joint venture BetMGM, which has forecast more than US$1.3 billion in revenue for 2022, as the Covid pandemic fuelled demand for online gaming.
Meanwhile, SJM Holdings' (0880) net loss doubled to HK$1.2 billion in the first quarter.
Net gaming revenues over the same period fell 2.57 percent to HK$2.35 billion while the adjusted negative EBITDA widened by 48.6 percent to HK$474 million.
In the first three months, SJM's VIP gross gaming revenue decreased 29.1 percent to HK$344 million from an earlier year.
The mass-market gross gaming revenue rose 0.3 percent to HK$2.05 billion while the slot machine gross gaming revenue was HK$139 million, an increase of 19.5 percent year on year.
Capital expenditure during the first quarter amounted to HK$118 million, mainly for construction in progress and furniture, fixtures and equipment, it said.
