MGM China net revenue drops by 95pct in Q2

Net revenues reported by MGM China dropped by 95 per cent in the second quarter of this year from the previous quarter to about US$33 million (MOP263.4 million), the gaming concessionaire reported in its latest financial report.

Most of that revenue came from VIP table games, with some US$32 million in hold adjusted net revenues reported, a 96 per cent quarter-to-quarter drop, with VIP table games turnover going down 96 per cent to US$450 million.

Meanwhile, mass table games went down 97 per cent quarter-to-quarter to US$66 million.

MGM China also registered US$116 million in Adjusted Property EBITDAR losses between April and June, when compared to the US$173 million in positive property result seen in the previous three month period.

According to brokerage Stanford C. Bernstein, MGM gave an update on liquidity position and cash burn where it stated that it has no near term or medium-term concerns, with ample liquidity to cover a “zero revenue” environment for over 22 months of operations in Macau and over 17 months in the US.