MGM China net revenue down 44% in 2022

MGM China has reported a decline in net revenues from HKD9.41bn (US$1.2bn) to HK$5.3bn (US$674m).

Macau.- MGM China has reported HK$5.3bn (US$674m) in net revenues for 2022. That represents a decline of 44 per cent compared to the prior year. It recorded negative adjusted EBITDA of HK$1.3bn (US$203m), compared to HK$187m (US$25m) in 2021.

The occupancy rate for 2022 was 34.1 per cent, down from 57.2 per cent in 2021. Daily gross gaming revenue (GGR) was 21 per cent of the 2019 level, higher than the market’s overall performance. MGM China’s market share grew to a record-high of 13.7 per cent, up from 12.5 per cent in 2021 and 9.5 per cent in pre-pandemic 2019.

For the fourth quarter of the year, the company reported net revenues of MOP1.4bn (US$175m) down 44 per cent from USD315m year-on-year.

The company stressed that the Covid-19 pandemic had a severe impact on Macau in 2022. Travel restrictions and heightened security measures at the borders significantly impacted visitor numbers. Macau saw a 26 per cent decline in visitor arrivals to 5.7 million visitors, compared to 7.7 million in 2021 and a record 39.4 million in 2019. Mainland China saw a 28 per cent drop in visitor numbers to 5.1 million.

This decline in visitors had a significant impact on the city’s gaming industry. Market-wide gross gaming revenue (GGR) dropped by 51 per cent year-on-year to MOP42.2bn (US$5.25bn), roughly 14 per cent of the pre-pandemic level in 2019. Casinos were temporarily closed several times during the year.

Kenneth Feng, president, strategic and chief financial officer of MGM China said: “We are excited to see a market rebound in 2023 as our guests are returning in force. The relaxation of travel restrictions and the entertainment events organized during CNY resulted in strong visitation to Macau and our properties. We see the encouraging results as a validation of our confidence in the Macau market’s recovery and long-term viability upon which our retendering commitments are built. 

“As we look beyond the strong January and CNY, we are highly confident in the trajectory for Macau and MGM China. We will stay dedicated to fulfilling our commitments to the Macao SAR government, demonstrate further strength in the integrated tourism and leisure industry and continue to make contributions to Macau.”