MGM China reports third quarter 2021 results
The pace of recovery has outperformed the market
MGM COTAI Emerald Villa Winners Awards
HONG KONG, Nov. 3, 2021 / PRNewswire / – MGM China Holdings Limited (“MGM China” or the “Company”; stock code SEHK: 2282) today announced selected unaudited financial data of the Company and its subsidiaries ( the “Group”) for the three months and nine months ended September 30, 2021.
Macau market saw a significant sequential decline in gross gaming revenue (GGR) during the third quarter of the year, reflecting the impact of the COVID-19 outbreak in mainland China and Macau in August and September. The third-quarter market-wide GGR fell 26% quarter-over-quarter to MOP 18.8 billion, 26% from pre-pandemic levels of 19Q4, due to tight traffic controls and frequent disturbances at borders. Visits to 21Q3 also fell 17% sequentially.
During the period, MGM China outperformed the market with market share increasing to around 13.8% in the third quarter, compared to 11.2% in the previous quarter. Our daily third-quarter GGR was 38% of pre-pandemic 19Q4 levels, compared to Macau 26% market.
For the third quarter, MGM China recorded total sales of approximately 2.2 billion Hong Kong dollars, down 7% from the second quarter. Adjusted EBITDA was approximately 101 million Hong Kong dollars, down 13% sequentially. The overall occupancy rate stands at 50.9%, compared to 65.5% in the previous quarter.
On a real estate basis, MGM MACAO recorded turnover of approximately HK $ 1.2 billion in the third quarter (21Q2: 1.3 billion Hong Kong dollars), and an adjusted EBITDA of approximately 127 million Hong Kong dollars (21Q2: 171 million Hong Kong dollars). The occupancy rate was 71.3% (21Q2: 85.9%).
At the same time, MGM COTAI recorded a turnover of approximately 1 billion Hong Kong dollars (21Q2: 1.1 billion Hong Kong dollars) and a loss reduced to a negative Adjusted EBITDA of approximately 26 million Hong Kong dollars (21Q2: negative 55 million Hong Kong dollars). The occupancy rate was 41.8% against 56.6% in the previous quarter.
The Group has maintained a healthy financial situation. From September 30, 2021, the Group had total liquidity of approximately 13.4 billion Hong Kong dollars, consisting of cash and cash equivalents and the undrawn gun.
During the period, MGM COTAI is preparing to launch Villa Emerald. The Villa is a tangible example illustrating the sustainable spirit of MGM “Originality + Innovation”. Each villa is a treasure chest filled with captivating works of art and cultural elements, immersing its guests in an unlimited experience where modern aesthetics meet traditional Chinese heritage, echoing the exterior design of the jewelry box Chinese stack of MGM COTAI.
The 28 spectacular suites, ranging from 128 square meters to 371 square meters, increase our inventory of upscale suites and complete our product portfolio of rooms that we can now accommodate different types of guests. Fusing tradition, creativity and technology in an eclectically harmonious space, Villa Emerald is uniquely designed to stay on top of the latest market trends and appeal to the new generation of family travel.
Villa Emerald is recognized by our clients as well as international design experts. He is honored to win two distinctions for his interior design, namely the winner of the SBID International Design Awards 2021 in the category Hotel Bedroom & Suites Design as well as the Platinum Winner at the 2021 MUSE Design Awards in interior design (Hotels & Resorts), announced in October. MGM is by far the first Macau for receiving these two distinctions which honor exceptional interior designs around the world.
Kenneth feng, President, Strategic Director and CFO of MGM China said: “At MGM, craftsmanship reigns supreme. Villa Emerald is the latest addition to our luxury accommodation portfolio after our Emerald suites, Skylofts and The Mansion at MGM COTAI. We offer our guests a great diversity extraordinary experiences each time they choose to stay with us. As the market gradually picks up, we believe MGM China is well positioned given our strength and willingness to serve premium mass customers. “
The Group believes that the pace of Macau the recovery will continue to depend on a broader sentiment as well as the pace of vaccination deployments across the region, which will ultimately lead to a lasting easing of travel restrictions. Macau saw its vaccination rate jump to 67% in October, while at MGM the vaccination rate reached over 90%.
“As a corporate citizen in Macau for 20 years, we have been convinced of the future success of this region. We look forward to continuing our efforts with the government to Macau long-term development and support the region’s tourism and diversification objectives, ”said Kenneth feng.
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About MGM China Holdings Limited
MGM China Holdings Limited (HKEx: 2282) is a leading developer, owner and operator of gaming complexes and accommodation in the Greater China Region. We are the holding company of MGM Grand Paradise, SA which owns one of six gaming concessions / sub-concessions to run casino games in Macau. MGM Grand Paradise, SA owns and operates MGM MACAO, the award-winning integrated upscale resort located on the Macau Peninsula and MGM COTAI, a contemporary luxury resort integrated into Cotai, which opened in early 2018 and more than doubles our presence in Macau.
MGM China is majority owned by MGM Resorts International (NYSE: MGM), one of the world’s leading hotel companies, operating a portfolio of resort brands such as Bellagio, MGM Grand, Mandalay Bay and The Mirage. For more information on MGM Resorts International, visit the company’s website at www.mgmresorts.com.
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SOURCE MGM China