MGM China Holdings Reports 2014 Annual Results - Feb 17, 2015

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MGM China Holdings Reports 2014 Annual Results
Distributing Final and Special Dividends

HONG KONG, February 17, 2015 – MGM China Holdings Limited (“MGM China” or the “Company”; SEHK Stock Code: 2282) today announced the audited consolidated annual results of the Company and its subsidiaries (the "Group") for the year ended December 31, 2014 (the “Year”).


For the 12 months ended December 31





 HK$ millions

 HK$ millions


Total revenue




Adjusted EBITDA before license fee (unaudited)




Profit attributable to owners of the Company




Earnings per share – basic and diluted




Final dividend per share




Special dividend per share




Total dividend per share for the Year





  • Year 2014 produced a number of records for MGM China. EBITDA grew by 5% to HK$6.998 billion while EBITDA margin improved by 170 basis points to 27.5%, as a results of growth in the main floor business and cost control. Net profit increased by 7% to HK$5.707 billion. These results were achieved despite the many challenges confronting us in Macau, requiring us to constantly adapt and respond to the rapidly changing external environment.
  • MGM China declared a special dividend of HK$0.816 per share amounting to approximately HK$3.101 billion, and recommends a final dividend of HK$0.245 per share amounting to approximately HK$931 million subject to shareholders’ approval in the forthcoming general meeting. Together with the interim dividend of HK$0.28 per share amounting to approximately HK$1.064 billion distributed during the Year, total dividends reach HK$1.341 per share and amount to approximately HK$5.096 billion. The special dividend and final dividend should not be taken as an indication of the level of profit or dividend going forward.
  • Our main floor table win for the Year rose 34% year over year, outperformed the industry growth of 18%. MGM China is the only Macau concessionaire that recorded a growth in the main floor business during the fourth quarter 2014. This performance, which has been our strength for a number of quarters, is based on our continuous focus on the details, which have allowed us to identify ways to improve our customer experience while at the same time improving operating performance.
  • Given the current market trends, which have seen revenue migration from the VIP to the mass segment, we have reallocated capacity such that over half of our tables are now allocated to the main floor. As a result of the reallocation the mass business contributed approximately 75% of our EBITDA in the fourth quarter. This compares to approximately 60% in 2013.
  • VIP table win decreased by 15% during the Year with win percentage at 2.8%. Slot win decreased by 10% year on year with the business being negatively impacted by hold. Slot hold was 4.4% compared to 5.1% a year ago.
  • Hotel rooms at MGM Macau achieved a record high occupancy of 98.7% for the Year. Revenue per available room (REVPAR) was HK$2,302.
  • We are committed to being a high quality operator and continuously upgrading the hospitality and gaming experience for our customers is essential. To remain competitive, we plan to invest approximately HK$780 million in capital this year.  We will redesign our main floor layout to improve traffic flow and operating efficiencies, and we will be also introducing a range of non-gaming products in the form of over 15 new retail outlets and re-conceptualize our food and beverage offerings to add additional capacity and diversity. 
  • MGM Cotai construction is moving along at full steam and the project is scheduled to open in 2016.  MGM Cotai will be an integrated casino, hotel and entertainment complex with about 1,500 hotel rooms, 500 gaming tables and approximately 1,500 slots. The total estimated project budget is HK$23 billion, excluding development fees eliminated in consolidation, capitalized interest and land related costs.
  • MGM China has a healthy financial position with leverage ratio of less than one based on trailing 12-month EBITDA. At December 31, 2014, the Group had HK$11.3 billion available to draw under its credit facility.

Grant Bowie, Chief Executive Officer and Executive Director of MGM China said: “We are certainly not immune to the challenges confronting the Macau market, but we do believe we have robust and responsive strategies that will allow us create opportunities for future growth. 

“We are keen to get our Cotai property opened as MGM China has the greatest potential for growth in the market with the addition of our second property in Cotai.  MGM Cotai will nearly quadruple our room base and triple our gross floor area, which will allow us to expand our product offerings into retail and entertainment; these all will create opportunities for earnings and margin improvement,” said Grant Bowie.


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About MGM China Holdings Limited

MGM China is one of the leading casino gaming resort developers, owners and operators in the greater China region. The Company is the holding company of MGM Grand Paradise, S.A., which holds one of the six gaming concessions / subconcessions to run casino games in Macau. MGM Grand Paradise currently owns and operates MGM MACAU, the award-winning, premium integrated casino and luxury resort located on the Macau Peninsula. It is traded on the Main Board of the Stock Exchange of Hong Kong under stock code 2282 and is a subsidiary of MGM Resorts International (NYSE: MGM).


For further enquiries, please contact:

MGM China Holdings Limited

Sidney Luk – Assistant Vice President of Investor Relations

Tel:             (852) 2587 8632 / 6399 5506

                    (853) 8802 1886 / 6252 8918