MGM China Posts 2016 Interim Results
Aug 4, 2016
EBITDA Grew Sequentially in Second Quarter Interim Dividend of HK 11.9 cents per Share Represents 35% Payout
HONG KONG, Aug. 4, 2016 /PRNewswire/ -- MGM China Holdings Limited ("MGM China" or the "Company", SEHK Stock Code: 2282) today announced the selected unaudited financial data of the Company and its subsidiaries (the "Group") for the three months and six months ended June 30, 2016.
- During the six-month period, MGM China recorded total revenue of HK$7.2 billion, decreased by 22% year-on-year. Adjusted EBITDA was HK$2.0 billion compared to HK$2.4 billion in 2015. Basic Earnings per Share was HK34.2 cents (2015: HK44.7 cents).
- During the six-month period, main floor table games win was down 5% year-on-year and slot win was down 25%. VIP table games win was down 35% year-on-year. Hotel rooms at MGM MACAU achieved an occupancy rate of 95% during the period with revenue per available room (REVPAR) of HK$2,159.
- For the second quarter, Macau's total gross gaming revenue (GGR) was down 8% sequentially, while our GGR was down 5%. Our revenue for second quarter declined by 4% to HK$3.5 billion, and adjusted property EBITDA grew by 4% sequentially to HK$1.0 billion.
- For the second quarter, main floor table games win at MGM China increased by 1%, a sequential increase led by our premium mass segment, compared to the Macau market decline of approximately 4-5%. VIP table games win decreased by 10% sequentially, compared to the market which was down approximately 11-12%.
- MGM China has been able to maintain competitiveness with healthy margins. We continue to manage costs and streamline operations in a disciplined manner, while remaining focused on main-floor business by offering a high-quality experience with MGM MACAU. Over 80% of MGM China's profit was contributed by the mass segment.
- We continue to invest in MGM MACAU to remain competitive in the market. We are currently undergoing a remodeling of hotel lobby and main casino floor to offer more diversified non-gaming products.
- The Group maintained its dividend payout of 35% by declaring an interim dividend of HK11.9 cents per share.
- Fit-out process at MGM COTAI remains underway across the entire project. We target to open MGM COTAI in second quarter of 2017. The budget is approximately at HK$24 billion.
Grant Bowie, Chief Executive Officer and Executive Director of MGM China said: "Mass trends in Macau have been strong and we are encouraged by the new player sign-ups and quality of play. Mass gaming and diversification are the key to the future development of Macau. We are ready to bring in more innovative and tailored offerings with MGM COTAI. With our quality product and unmatched execution, we are confident that we can capture the growth opportunities of Macau."
About MGM China Holdings Limited
MGM China (HKEx: 2282) is a leading developer, owner and operator of gaming and lodging resorts in the Greater China region. We are the holding company of MGM Grand Paradise, SA which holds one of the six gaming concessions/subconcessions to run casino games in Macau. MGM Grand Paradise, SA owns and operates MGM MACAU, the award-winning premium integrated resort located on the Macau Peninsula and is developing a second resort, MGM COTAI which is expected to more than double our presence in the world's largest gaming market, Macau. For more information about MGM China Holdings Limited, visit the Company's website at www.mgmchinaholdings.com.
MGM China is majority owned by MGM Resorts International (NYSE: MGM) one of the world's leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.
For further enquiries, please contact:
MGM China Holdings Limited
Sidney Luk - Vice President of Investor Relations
Tel: (853) 8802 1886 / (852) 2587 8632