MGM China has released its financial results for the second quarter of 2024, showcasing a significant increase in revenue and visitations compared to the previous year and pre-pandemic levels.
Net Revenue
MGM China’s net revenue for Q2 2024 surged by 52% year-on-year, reaching HK$16.2 billion (US$2.07 billion). This represents a substantial 144% increase compared to the same period in 2019.
EBITDA Margin
The adjusted EBITDA margin improved to 30.5%, up from 29.7% in 2023 and 27.2% in 2019, reflecting enhanced operational efficiency.
Property-Specific Performance:
MGM COTAI, recorded revenue of HK$9.5 billion and an adjusted EBITDA of HK$2.8 billion. MGM Macau, achieved revenue of HK$6.8 billion and an adjusted EBITDA of HK$2.1 billion.
Kenneth Feng, President and Executive Director of MGM China, commented on the results, stating: “We are delighted to see our continuous growth and outperformance driven by our deep understanding of customers and our ability to adapt swiftly to their preferences.”
Increased Property Visitations
MGM China also reported a remarkable 85% year-on-year increase in property visitations for Q2 2024, with an occupancy rate reaching an impressive 93.9%. This indicates a strong recovery in customer confidence and travel activity in Macau.
Macau’s Gaming Industry Performance
The broader Macau gaming industry has also shown signs of robust recovery. According to Macau’s Gaming Inspection and Coordination Bureau (DICJ), the Gross Gaming Revenue (GGR) for July 2024 was MOP$18.6 billion (US$2.31 billion), marking an 11.6% year-on-year increase and a 5.1% rise from June. The total GGR for the first seven months of 2024 amounted to MOP$132.3 billion, a 36.7% increase compared to MOP$96.7 billion in the same period last year.
Visitor Arrivals
Total visitor arrivals in the first half of 2024 increased by 43% year-on-year, averaging 91,868 per day. Visitation levels have recovered to 82% of the first half of 2019, indicating a strong rebound in tourism and gaming activities.
Strategic Growth and Customer Focus
MGM China’s Q2 performance underscores its strategic focus on understanding customer preferences and swiftly adapting to market demands. The significant increase in revenue and visitations highlights the effectiveness of MGM China’s customer-centric approach and its ability to capitalize on the recovering market.
Operational Efficiency and Margin Improvement
The improvement in the adjusted EBITDA margin to 30.5% indicates that MGM China has successfully implemented measures to enhance operational efficiency. This is crucial for maintaining profitability in a competitive market and sustaining long-term growth.
Property Performance Breakdown
The strong performance of both MGM COTAI and MGM Macau demonstrates the company’s balanced portfolio and effective management of its properties. MGM COTAI’s higher revenue and EBITDA figures suggest a leading position in attracting customers and generating income.
Market Recovery and Future Outlook
The overall recovery of Macau’s gaming industry, as indicated by the increased GGR and visitor arrivals, bodes well for MGM China’s future performance. As visitation continues to approach pre-pandemic levels, MGM China is well-positioned to leverage this growth and further strengthen its market presence.
MGM China’s Q2 2024 financial results reflect a robust recovery trajectory and strategic success in adapting to market dynamics. The substantial increase in revenue, improved EBITDA margin, and significant rise in property visitations underscore the company’s resilience and operational excellence. As Macau’s gaming industry continues to recover, MGM China is poised for sustained growth and continued market leadership.