Investors cheer as MGM China's earnings rise

Reuters and staff reporter

MGM China's (2282) share price once jumped 7.5 percent on yesterday after it reported a 25.2 percent year-on-year increase in its 2024 adjusted property earnings before interest, taxes, depreciation, amortization and restructuring or rent costs.

MGM's adjusted EBITDAR totaled US$1.1 billion (HK$8.58 billion) last year, up from US$867 million in the previous year, according to its US-listed parent MGM Resorts International's results.

The revenue of MGM China increased 28 percent to US$4 billion compared to US$3.2 billion in the prior year, primarily attributed to the climb in win rate.

Revenue in the fourth quarter last year was US$1 billion, an increase of 4 percent compared to the same quarter in 2023.

The total adjusted EBITDAR of the last quarter decreased 3 percent to US$255 billion year-on-year.

Quarterly casino revenue from MGM China, representing the operations in China and Macau, grew 4 percent to US$855 million from a year ago.

MGM Macau and Cotai's room occupancy rate in fourth quarter were 94.8 percent and 93.9 percent respectively, similar to 2023; but revenue per available room fell sharply, with MGM Macau falling 26 percent to HK$2,383 and MGM Cotai falling 28 percent to HK$2,031.

Shares in MGM China soared to 7.5 percent before closing at HK$10.34, up 6.49 percent.

Meanwhile, casino operator MGM Resorts International beat fourth-quarter profit and revenue estimates, aided by strength from more bookings across its properties.

Shares of the Las Vegas, Nevada-based company rose about 9 percent in aftermarket trade on Wednesday. The company expects its jointly-owned online sports-betting service, BetMGM, to be profitable this year. On an adjusted basis, MGM earned 45 cents per share for the quarter ended December 31, ahead of analysts' estimates of 30 cents per share, according to LSEG compiled data.