Macau (MNA) – Local gaming operator MGM China saw a drop in its profits for the year 2017 of 23.6 per cent year-on-year to HK$2.3 billion (US$296 million) vis-a-vis HK$3.0 billion a year ago, the company announced on Tuesday evening.
The company explained in its filing with the Hong Kong Stock Exchange that the decline of profit for the year was ‘due to the recognition of a deferred tax liability of HK$317.1 million pertaining to the distributable profit of MGM Grand Paradise during the year’.
The company’s net revenues, on the other hand, increased 3 per cent annually to HK$15.4 billion, of which HK15.1 billion was revenue generated by the casino segment, up 3.1 per cent year-on-year.
According to the company’s filing, adjusted property EBITDA for 2017 was HK$4.59 billion, up 2.1 per cent from HK$4.49 billion from the previous financial year.
Owing to the ‘acceleration of pre-opening costs amounting to HK$459.1 million for the preparation’ of the company’s latest property – MGM Cotai – that opened on February 13, the company saw a decrease of 15.3 per cent to HK$2.6 million in its operating profit.
