MGM China has reported a negative EBITDA compared to a positive HK$45.7m in the first quarter.
Macau.- MGM China has shared its financial results for the second quarter of the year, posting revenue of HK$1.12bn (US$143m). That’s a drop of 46.4 per cent quarter-on-quarter and down 53.5 per cent when compared to last year.
The company saw its adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) for the second quarter of 2022 turn negative to HK$382.4m (US$48.7m). Last year Q2 EBITDA was HK$116m. In the first quarter of 2022 it was HK$45.7m.
For the first six months of the year, MGM China posted revenue of HK$3.22bn, compared to HK$4.71bn for the same period last year. Adjusted EBITDA was a negative HK$336.7m compared to positive HK$200.35m in H1 2021.
The company attributed the weak performance to the Covid-19 resurgence that began in mainland China in March, followed by a local outbreak in Macau at the end of June, which led to enhanced travel and border controls that reduced visitation.
Due to the latest outbreak, Macau’s casinos closed for two weeks in July. GGR for July was down 83.9 per cent month-on-month from MOP2.48bn to MOP398m (US$49.2m). The figure was the lowest since 2003 when city authorities began publishing monthly figures.
As for the upcoming gaming concession tender, MGM China said: “MGM will continue to unswervingly support the Macau government to promote economic diversification, helping Macau further consolidate its position as a world centre of tourism and leisure as well as scale new heights for its economic development.”
Authorities have announced that casino operators must submit their proposals before September 14.
MGM China said its total liquidity was about HK$10.7bn as of June 30, compared with HK$13.7bn at the same time last year. Parent company MGM Resorts reported consolidated net sales of US$3.26bn in the second quarter, an increase of 44 per cent over the same period last year. The US-based operator reported net income of US$1.78bn, compared with US$104.8m in the first three months.