In Q3 2023, MGM China, a subsidiary of MGM Resorts, witnessed a remarkable resurgence, with casino revenue experiencing an astounding 900% growth and overall net revenue soaring by 829%. This surge, reaching $813 million, not only signifies a robust recovery but also outpaces pre-pandemic levels, showcasing the revival of the Macau gambling market.
Macau’s Strong Recovery:
Macau’s recovery in 2023 has been substantial, evident in October’s revenue, which marked the highest for the year and approached pre-pandemic levels. The positive trend extends to other Asian operators like Melco, which reported a favorable Q3 2023 with total operating revenue reaching $1.02 billion.
MGM China’s Exceptional Performance:
MGM China’s Q3 2023 earnings, a 10% increase compared to Q3 2019, indicate a surpassing of pre-pandemic levels. Despite this stellar performance, stock prices experienced a 4.1% decline from November 9, reflecting the complex dynamics of market reactions.
Key Gaming Statistics at MGM China:
Breaking down the gaming statistics, MGM China’s casino revenue witnessed a staggering 900% growth, reaching $714 million. Main floor table games drop also surged by 838%, underscoring heightened engagement following the easing of Covid-19 restrictions.
Adjusted Property EBITDAR and Market Capitalization:
Adjusted property EBITDAR for Q3 2023 reached $226 million, a notable shift from the Q3 2022 loss of $70 million. Impressively, this figure also marks a 23% increase from Q3 2019, showcasing MGM China’s robust Covid-19 recovery. The current market capitalization stands at HK$37.24 billion (US$4.77 billion).
MGM Resorts’ Outlook:
MGM Resorts President and CEO Bill Hornbuckle expressed optimism about MGM China’s exceptional performance, citing a strong start to the quarter and a promising business momentum. The positive outlook extends to future developments, including projects in New York and Japan, along with the growth of their international digital business.
MGM China’s Q3 2023 earnings report not only signifies a remarkable recovery but surpasses pre-pandemic levels, highlighting the resilience of the Macau gambling market. With a surge in casino revenue, improved financial metrics, and a positive market outlook, MGM China is positioned for sustained growth in the evolving landscape of the gaming industry.