MGM China, a Macau-based flagship developer, owner and operator of gaming resorts and accommodation in the Greater China region, officially announced overnight a decline in group-wide profit of HK$5.23 billion, which is approximately 666 million US dollars, in 2022, compared to a HK$3.85 billion, which is approximately 490 million US dollars, drop in 2021 because of the ongoing consequences of the COVID-19 pandemic.
Report on financial results for FY22:
In the official release of its FY22 financial results, the company also disclosed an adjusted EBITDA drop of HK$1.27 billion, which is approximately $162 million US dollars, in 2022, meaning its EBITDA profit fell from HK$187.2 million, which is approximately $24 million US dollars, in 2021 earnings.
In terms of gross casino income, the report shows that gross casino revenue almost halved to HK$5.58 billion, which is approximately $711 million US dollars, for the year, which involve a 40.4% drop in massive table wins to HK$4.47 billion, which is approximately 569 million US dollars, a 72.5% drop in VIP table winnings to HK$580.8 million, which is approximately 74 million US dollars, and a decrease of 42.4$ in slot machine winnings to HK$525.2 million, which is approximately 67 million US dollars.
In this regard, the company has not advised payment of a final dividend for the year ending 31 December 2022.
Big expectations for this year:
Although the company has recently experienced some of the aforementioned profitability issues, analysts have pegged MGM China as the firm that will generate the most profits in 2023.
In support of this statement is the fact that nearly 200 of the latest gaming tables have been added to the company’s allocation after the issuance of new concessions from 1 January 2023.
However, that’s not all; as it is also predicted that the firm will manage to capture up to 3% more market share than its rivals in the coming months.
Commenting on the company’s newest gaming tables, Morgan Stanley, an investment bank, recently said: “MGM China will become the first of Macau’s six concessionaires to reach pre-COVID levels of mass GGR.”
Headquartered in Macau, MGM China is the holding company of MGM Grand Paradise SA.
Furthermore, MGM Grand Paradise SA owns and manages MGM Macau, an innovative premium integrated resort found on the Macau Peninsula and MGM Cotai, a modern luxury deluxe resort in Cotai, which officially opened in early 2018.
However, MGM China Holdings is majority-owned by MGM Resorts International, one of the leading international hospitality companies, which manages a portfolio of destination resort brands that involve Bellagio, MGM Grand and Mandalay Bay
It was founded and officially launched in 2007.