The MGM China Holdings Limited subsidiary of American casino operator MGM Resorts International has reportedly released its third-quarter financial results showing that net revenues tumbled by 93.7% year-on-year to just over $46.83 million.
According to a report from Inside Asian Gaming, the drop meant that the firm’s adjusted earnings before interest, tax, depreciation and amortization for the three months to the end of September plummeted by over 147% year-on-year to a deficit of $94.22 million. The source detailed that the Hong Kong-listed operator has now chalked up an aggregated shortfall of around $338.37 million since the start of 2020 following first and second-quarter losses of about $129.93 million and $114.22 million respectively.
Las Vegas-headquartered MGM Resorts International owns almost 56% of MGM China Holdings Limited and reportedly revealed a third-quarter loss of its own at some $535 million. Both operators have been severely damaged by the recent coronavirus pandemic with the latter, which is responsible for Macau’s MGM Cotai and MGM Macau venues, having earlier admitted to chalking up ‘near zero’ visitation for the three months to the end of June.
MGM China Holdings Limited reportedly moreover explained that third-quarter revenues from its MGM Cotai property had come in at a mere $12.82 million as mass-market and VIP win decreased by 95% year-on-year to place the 1,390-room venue’s resultant earnings before interest, tax, depreciation and amortization in the red to the tune of $58.84 million. The enterprise purportedly pronounced that its nearby MGM Macau development saw its own loss for the three-month period reach $35.36 million owing to an analogous fall in player activity.
However, Inside Asian Gaming used a subsequent story to report that Bill Hornbuckle, President and Chief Executive Officer for MGM Resorts International, more recently told investors that visitation to Macau has been steadily improving in October with MGM China Holdings Limited now expected to break even for the second half of the 31-day month.
Hornbuckle reportedly declared…
“Month to date we are very encouraged that our properties have crossed property break-even levels, led by recovery in the premium segments. We expect the rate of recovery will continue to be gradual led by premium mass-market that both of our Macau properties are ideally positioned to capture.”