Amidst the trials of the COVID-19 pandemic, MGM China Holdings Ltd has emerged with resilience, marking fiscal year 2023 as a pivotal turning point. With a remarkable reversal of fortunes, the company not only navigated through challenging times but also redefined success in the realm of Macau’s concessionaires.
Resumption of Dividends:
MGM China Holdings Ltd has announced a Special Dividend of HK$0.104 per share for the fiscal year 2023, signaling a significant milestone. This move positions MGM China as only the second of Macau’s concessionaires to resume dividend payments post-pandemic, echoing the confidence in its financial resurgence.
Financial Performance:
In a stark reversal from the preceding year, MGM China recorded a profit attributable to owners of the company amounting to HK$2.64 billion (US$337.4 million) for FY23. This achievement marks a notable turnaround from a loss of HK$5.23 billion (US$669 million) in the previous fiscal period.
Dividend Allocation:
The Special Dividend, totaling HK$395.2 million (US$50.5 million), accounts for 15% of the group’s profit, underlining a commitment to rewarding shareholders amidst the company’s resurgence. This strategic allocation reflects MGM China’s dedication to balancing shareholder returns with operational sustainability and expansion.
Financial Highlights:
FY23 witnessed impressive financial milestones for MGM China, with casino revenue surging to HK$21.8 billion (US$2.79 billion), marking a remarkable 391% increase year-on-year. Adjusted EBITDA soared to HK$7.24 billion (US$926 million), a significant turnaround from the HK$1.27 billion (US$162 million) loss reported in 2022.
Board’s Decision:
The decision to declare the Special Dividend and recommend the payment of the Final Dividend stems from a thorough review by the Board. Assessing the group’s financial position, capital requirements, and future prospects, the Board affirmed MGM China’s capacity to sustain operations, facilitate expansion, and reward shareholders.
Loan Facility Termination:
Further underscoring MGM China’s financial vigor, the company terminated a US$750 million revolving loan facility provided by its parent company. This decision reflects the substantial recovery witnessed in 2023, culminating in record-breaking EBITDA for both the fiscal year and the December quarter.
Industry Landscape:
Galaxy Entertainment Group previously stood as the sole Macau concessionaire to reinstate dividend payments, with analysts projecting a cautious outlook for others until 2025. However, MGM China’s decisive actions and robust performance challenge prevailing expectations, potentially reshaping industry dynamics.
MGM China Holdings Ltd’s fiscal year 2023 signifies a triumphant narrative of resilience, recovery, and returns. With a strategic dividend declaration, stellar financial performance, and prudent decision-making, the company emerges as a beacon of stability and prosperity in Macau’s gaming landscape. As it charts a course towards sustained growth, MGM China epitomizes resilience in the face of adversity and the promise of a brighter future.