For one of Macau’s 6 concessionaires, MGM China, last year was its best year of all time in terms of income collected, as it officially revealed all-time highs for 4Q23 and entire year Adjusted Property EBITDAR.
Financial results:
Based on the data included within MGM Resorts International’s, the parent firm of the said concessionaire, financial results for the fourth quarter of 2023 and FY23, which were formally released during the early morning of February 14 (according to Asia time), MGM China announced that the Adjusted Property EBITDAR in the December quarter was US$262m, which altered a loss of US$55m during the fourth quarter of 2022, and was 42% higher than disclosed in the identical time frame of 2019. In addition, this was reached on net incomes of US$983m, an increase of 462% annually and 35% bigger than the fourth quarter of 2019.
Commenting on the results, the firm said, citing an extra 200 fresh gaming tables approved by the Government of Macau under its fresh 10-year gaming concession: “The current quarter was positively affected by the removal of COVID-19 related entry restrictions in Macau (on 8 January 2023) and an increase in visitation compared to the prior year quarter, as well as an increase in authorized tables in 2023.”
As for FY23, the aforementioned firm reported Adjusted Property EBITDA of US$867m on an EBITDAR margin of 27.5%, altering a loss of US$203m in 2022, as well as being 18% higher compared to 2019. In addition of that, net incomes of US$3.2 bln increased by 368% annually and was 9% higher from 2019.
Relatedly, adding additional details to its supplementary earnings, the concessionaire unveiled that mixed gross gaming incomes (GGR) at MGM Cotai and MGM Macau, aka its two facilities in Macau, in the fourth quarter of 2023 surpassed levels of 2019 by 25%, involving an increase of 74% in primary floor gaming win to US$877m. On a full-year basis, GGR increased only 1%, however, the mass floor win of US$2.7 bln grew by 43% compared to 2019.
By assets, MGM Macau revealed Adjusted Property EBITDAR of HK$824.7m, which is approximately US$105.5m, and an overall income of HK$3.05bln, which is approximately US$390.0m, for the fourth quarter of 2023. As for MGM Cotai, it revealed an Adjusted Property EBITDAR of HK$1.37bln, which is approximately US$175.2m, and an overall income of HK$4.62bln, which is approximately US$590.8m.
Record-breaking year for MGM Resorts International:
MGM Resorts International may also boast of having its best year ever, as not just did Macau made a complete recovery, but also Las Vegas set its own all-time records. As such, the said firm officially revealed consolidated incomes of US$4.4bln, net profit referable to the said firm of US$313m, as well as consolidated Adjusted EBITDAR of US$1.2bln in the fourth quarter.
Commenting on this, CEO and President of MGM Resorts International, Bill Hornbuckle, commented according to Inside Asian Gaming: “Our Las Vegas Strip Resorts and MGM China set new all-time records for full year and fourth quarter Adjusted Property EBITDAR. Our premium positioning and offerings in Las Vegas enable us to capture incremental profit during major events such as the inaugural Formula 1 race and our first Super Bowl. 2024 is off to a winning start with the launch of our Marriott relationship as well as opportunities to increase our convention room nights and international mix.”