MGM China’s Impressive Third Quarter Performance

In the third quarter of 2023, MGM China experienced a remarkable surge in net revenues, with a staggering increase of 829 percent, reaching $812.52 million. This represents a 10 percent rise compared to the same quarter in 2019. The company’s adjusted property EBITDAR also saw substantial growth, rising by 23 percent to $226 million, a significant improvement from the $70 million loss reported in the third quarter of 2022.

One of the key contributors to MGM China’s remarkable performance was the extraordinary growth in casino revenue, which witnessed a staggering 915 percent increase year-on-year, reaching $714 million. The flagship property, MGM Cotai, outperformed the company’s peninsula venue, generating HK$3.48 billion in revenue, a ten-fold increase compared to the previous year. MGM Macau also experienced significant growth, with its revenue soaring by 650 percent to HK$2.87 billion. Both properties managed to reverse their negative EBITDA figures, with MGM Macau gaining HK$880.46 million and MGM Cotai earning HK$1 billion.

Bill Hornbuckle, the CEO of MGM Resorts, expressed his satisfaction with MGM China’s exceptional performance, stating, “MGM China is performing exceptionally well.” The parent company, MGM Resorts International, reported a total revenue of $3.97 billion for the quarter, with casino operations contributing $2.05 billion. The company also recorded a profit of $161.11 million, a significant turnaround from the $576.83 million loss reported in the same quarter of the previous year.

Looking ahead, MGM Resorts CEO Bill Hornbuckle highlighted the company’s focus on development opportunities, including projects in New York and Japan. The company is actively pursuing a gaming license in New York and is progressing with its $10 billion integrated resort project in Osaka, Japan. Additionally, MGM Resorts aims to expand its international digital business and BetMGM platform.

Despite its impressive performance, MGM China faced some challenges and headwinds during the quarter. The company was affected by a cyberattack in September, which led to significant disruptions and financial implications. However, MGM Resorts CEO Bill Hornbuckle expressed confidence in the company’s ability to overcome this challenge, stating that they are now a stronger company as a result.

In the United States, MGM China is also facing potential worker strikes, with up to 35,000 industry professionals from MGM, Wynn, and other operators planning to protest unless labor contract conditions are resolved. These challenges highlight the complex and dynamic nature of the gaming industry.

Strong Performance in the US Market

MGM China’s Las Vegas operations continued to deliver strong results, despite an 8 percent year-on-year decline. This decrease can be attributed to the sale of The Mirage in December 2022 and the cybersecurity incident in September 2023. Adjusted property EBITDAR reached $714 million, a 16 percent decrease from the same quarter in the previous year. The company’s regional properties recorded net revenue of $925 million, a 5 percent decline, primarily due to the sale of Gold Strike Tunica in February 2023 and the cybersecurity incident. Adjusted property EBITDAR for regional properties fell by 9 percent to $293 million.