One of the largest casino operators in Macau, MGM China Holdings Ltd, has recently released their third-quarter profits, showing a 6% decline in net revenue, as opposed to last year. In 2015, the Chinese division of MGM Resorts International (MGMRI) reached a Q3 net revenue of $529 million, while this year that number dropped down to $500 million.

The earnings were reported as part of the consolidated report of the parent company, MGMRI, who became the majority stakeholder in the operator after acquiring shares on several occasions. But unlike their Chinese subsidiary, MGMRI’s casino net revenue is up this year, noting an 8% y-o-y rise and amounting to $1.3 billion.

But while the Q3 net revenue saw a decline, MGM China’s adjusted EBITDA is up by 17% this year, or $150 million, a growth the company believes to be a direct result of their quality “main-floor business”. However, it’s interesting to note that while their Q3 adjusted EBITDA has increased, their 9-month EBITDA is down to $383m, as opposed to 2015 when it reached $408 million. This is certainly not the case with their domestic operations, which brought the best adjusted EBITDA since 2007, earning a total of $570 million in Q3 alone.

Coinciding with the lower net revenue, MGM China also saw a drop in their hold percentage, which fell down from 3.7% in 2015 to 3% in 2016. The company also saw a decline in their VIP table game revenue which fell by 26% due to a 14% decrease in VIP turnover. On the other hand, their floor table game revenue improved significantly in 2016, going up by 21%.

MGM China only operate one casino resort in the market, the MGM Macau Grand Casino Resort, while they are building a second property, the MGM Cotai Resort that’s scheduled for opening in the second quarter of 2017.