MGM China posts net loss of US$306m for H1

Net revenues declined 33.4 per cent year-on-year from HK$4.13bn ($527m) to HK$2.75bn ($351m).

Macau.- MGM China has shared its financial results for the first half of the year. It’s net loss widened by 39 per cent on a year-on-year basis to HK$2.4bn (US$306m). Net revenue, primarily casino revenues dropped 33.4 per cent year-on-year from HK$4.13bn ($527m) to HK$2.75bn ($351m).

MGM China said: “The Covid-19 pandemic continued to have significant impacts on our business, results of operations and financial condition during the reporting period. This is an unprecedented global public health crisis and we place high importance on the health and safety of our employees, guests and all Macau citizens as the fight against this pandemic continues.”

The company reported that outbreaks of Covid-19 cases in Macau and neighbouring regions affected visitation to Macau and trading volume across all operations at MGM Macau and MGM Cotai. Total visitor arrivals in Macau decreased by 11.8 per cent and visitation from mainland China by 12.2 per cent for the six months ended June 30 when compared to the same period in 2021. 

However, MGM said it remains optimistic about the long-term growth of the Macau market due to:

• The financial investments made by gaming concessionaires and sub-concessionaires, including MGM Grand Paradise, opening new properties providing superior and diversified products to enhance the position of Macau as a world-class tourism centre;
• Infrastructure improvements in Macau and the Greater Bay area, such as the opening of the Hong Kong-Zhuhai-Macau bridge; the expansion of the Macau Airport; the opening of Qingmao border and Hengqin border 24-hour checkpoints; 
• the opening of Macau Light Rapid Transit (“Macau LRT”) System; the development of extension of Macau LRT route to Hengqin Island; the ongoing expansion of the China High Speed Rail routes to Zhuhai border gate from key cities in mainland China. All are expected to facilitate more convenient travel to Macau;
• The development of Hengqin into a tourism island, which together with Macau has been designated as a key tourism hub by the Chinese Government; 
• The continuous growth of mainland China outbound tourism, particularly in light of the growing middle class; and
• The strong efforts to control the Covid-19 pandemic by the mainland China and Macau Governments.

Macau’s first-half revenue came in at its lowest since H1 2006. Revenue for the first six months of 2022 was MOP26.27bn (US$3.26bn), down 46.4 per cent year-on-year and the weakest since the MOP25.75bn recorded for the first six months of 2006.