MGM China net revenue goes up 6pct y-on-y in 2019 Q4

The net revenue generated by gaming operator MGM China in the last quarter of 2019 has increased 6 per cent year-on-year to US$727 million (MOP5.8 billion), the company indicated in its latest financial report.

In the same period, VIP table games win decreased 20 per cent when compared to the previous year, with the group justifying the fall in a 33 per cent drop in turnover at its MGM Macau property.

At the same time, main floor table games win increased 31 per cent, due to 25 new-to-market tables being added to MGM Cotai in 2019.

Adjusted Property EBITDA increased 10 per cent in the last three months of 2019 to US$185 million, with MGM Macau generating US$110 million and MGM Cotai some US$75 million.

Considering the full 2019 year, the group saw net revenues increase 19 per cent to US$2.9 billion from the year prior

The gaming operator also addressed the expected negative impact the recent coronavirus outbreak could have on its 2020 first quarter results.

The impact would result from China’s temporary suspension of its visa scheme that permits mainland Chinese to travel to Macau; the temporarily closing of the Hong Kong Macao Ferry Terminal; and the 15-day period casino operations suspension imposed by the Macau government on February 5, 2020.

Yesterday it was revealed that hotel occupancy in Macau last week reached 16 per cent, while the number of entries in the city dropped 91.2 per cent year-on-year between January 27 and February 11.

‘The extent to which the coronavirus impacts the Company’s results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and any additional actions taken to contain it from spreading,’ the company noted.