MGM China Reports 2017 Annual Results
Feb 20, 2018
Main Floor Business Contributed Over 80% of Profit Sequential Growth Outperformed Market
HONG KONG, Feb. 20, 2018 /PRNewswire/ -- MGM China Holdings Limited ("MGM China" or the "Company"; SEHK Stock Code: 2282) today announced the selected financial data of the Company and its subsidiaries (the "Group") for the three months (the "Quarter") and 12 months ended December 31, 2017 (the "Year").
- During the Year, MGM China recorded revenue of HK$15.4 billion (2016: HK$14.9 billion). The Group recorded adjusted EBITDA of HK$4.6 billion (2016: HK$4.5 billion) and net profit of HK$2.3 billion (2016: $3.0 billion). Basic Earnings per Share was HK61.1 cents. (2016: HK79.9 cents).
- The Company proposed a final dividend of HK$0.097 per Share. Including the interim dividend of HK$0.116 per Share declared during the Year, total dividend reached HK$0.213 per Share, representing 35% payout ratio.
- The Group maintained adjusted EBITDA margin of 30% for the Year (2016: 30%), with main floor business accounting for over 80% of profit.
- For the Quarter, MGM China recorded sequential revenue growth of 16% to HK$4.3 billion and adjusted EBITDA growth of 23% to HK$1.3 billion, meanwhile the total gaming revenue in Macau was up by approximately 8%.
- Main floor gross table games win for the Quarter was up 23% sequentially, compared to market growth of approximately 11%. VIP gross table games win was up 12%, compared to market growth of approximately 5%.
- Adjusted EBITDA margin for the Quarter reached 30.2%, up by 170 basis points sequentially.
- We are experiencing robust business and traffic at MGM MACAU for the Quarter, ending 2017 on a high note. Property visitation and restaurant covers increased during the Quarter. In December, we launched a three-month program with the very successful teamLab co-creative digital exhibition at our Art Space, which is bringing an estimated additional 2,000 visitors daily to the property. Gaming customer numbers have been increasing across multiple tier bands, driving a significant growth in the main floor business.
- To maintain the resort's competitiveness, we have been undergoing a multi-year remodeling of the main floor at MGM MACAU, including introducing additional retail space. New retail outlets at the northeast and northwest entrances of the property have opened during the first quarter this year further supporting the development of non-gaming income at MGM MACAU.
- We celebrated 10 years of operations in Macau in December 2017, and we thanked the 1,900 employees who have been with us since the beginning, for a decade of commitment and loyalty. We also held a ceremony to celebrate the 300 employees that have graduated from our core learning and development programs including PRIDE, MAP and Continuing Education. We invest heavily in these programs knowing that they will contribute to making the Macau leaders of tomorrow.
- We celebrated the opening of MGM COTAI on February 13, 2018, showcasing MGM's one-of-a-kind entertainment experiences for the first time. The HK$27 billion integrated resort redefines the way people experience art and entertainment through innovative technology, putting Macau center stage as a global travel destination and plays a pivotal role in Macau's evolution as World Center of Tourism and Leisure. While the resort has only just opened, the initial demand and customer feedback is extremely positive.
Grant Bowie, Chief Executive Officer and Executive Director of MGM China said: "We are reinventing integrated resort of today. What we recognize globally is the transformation of people's life to the digital platform. At MGM COTAI we are creating a space that our guests can actively participate and experience the content we offer. We believe MGM COTAI will drive greater product diversification and bring more advanced and innovative forms of entertainment to Macau as it grows as a global tourism destination."
About MGM China Holdings Limited
MGM China Holdings Limited (HKEx: 2282) and 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 MGM COTAI, a contemporary luxury integrated resort in Cotai, which opened in early 2018 and more than doubles our presence in Macau.
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