Second Consecutive Quarter of Sequential EBITDA Margin Growth MGM COTAI On Target for Fourth Quarter 2016 Opening
HONG KONG, Oct 29, 2015 /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 ended September 30, 2015 (the "Period").
- During the Period, the Group recorded total revenue of HK$4.1 billion and adjusted EBITDA of HK$1.1 billion, sequential decrease of 5% and 3% respectively from the second quarter.
- Despite current market conditions, MGM China's EBITDA margin improved consecutively in the past two quarters. Property EBITDA margin was 27.05% for the period, a 43 basis point improvement from the second quarter, driven by a disciplined approach to efficiency management. We continually review our business processes and have been successful in eliminating cost to prevent margin deterioration without impacting our service standards.
- VIP table games revenue was flat quarter on quarter. Main floor table win was down 10% sequentially with mass hold was at the low end of the range in the third quarter. During the period, main floor contributed over 70% of profit.
- At MGM COTAI, we have achieved a milestone event of topping off our hotel towers and will celebrate the event in the coming week. We have completed the structural steel installation on our Spectacle roof structure. Featuring approximately 1,500 hotel rooms and up to 500 gaming tables with over 85% gross floor area of non-gaming element, MGM COTAI remains on target for fourth quarter 2016 opening.
- As we seek to support the wider Macau business community, earlier this month MGM China announced our plans to expand business with local Small and Medium Enterprises or "SMEs". These initiatives are focused on further increasing our engagement with local SMEs. In 2014, over 80% of MGM China's purchases went to local Macau businesses.
- To further our commitment to local culture, we recently took our well known MGM Lion Dance competition to Beijing for our first ever international lion dance competition.
- MGM China is also committed to developing and nurturing local young talents for the hospitality industry. Six of our most promising Macau team members have travelled to Las Vegas where they will develop the management and gaming and hospitality skills as part of MGM Resorts' highly-acclaimed Management Associate Programme. This is our second year that we have participated in the programme.
Grant Bowie, Chief Executive Officer and Executive Director of MGM China said: "Our goal is to provide our local talents with the opportunity to be our future leaders as we look to support Macau's development into an international tourism destination. MGM is committed to growing our presence in Macau and share these opportunities with our community."
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.
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.
SOURCE MGM China