MGM China profit down 36.8 pct in H1

MGM China announced yesterday a profit (adjusted EBITDA) of HK$2.4 billion regarding the first half of the year. That’s a 36.8 per cent drop compared to the same period in 2014 (HK$3.8 billion). The gaming operator recorded total gaming revenues of HK$9.2 billion, a decline of 33 per cent, but still better than the overall Macau market (a 37 per cent fall).
In a statement, Grant Bowie, Chief Executive Officer and Executive Director of MGM China, said: “MGM China continues to compete with a focus on precision of marketing efforts, high quality offerings and best in class service standards. Our implementation of targeted marketing initiatives is expected to drive existing customer share of wallet while seeking opportunity for new player acquisition. Expanding and yielding the database are always our key priorities.
During the six-month period, revenues from the mass floor dropped 19 per cent, while slots generated 26 per cent less revenues. VIP gains were down 46 per cent.
The operator noted that despite the opening of a new property by one of its competitors (Galaxy) MGM’s market share in Macau in June actually increased over April and May.
In the second quarter, the profit margin (adjusted EBITDA margin) was 26.6 per cent, a 30 basis points sequential improvement compared to the first quarter. Still, regarding the second quarter, mass revenues declined by 5 per cent from the previous quarter – still better than the overall market here (decline of 7.5 per cent ). VIP revenues were down 21 per cent against a 17 per cent decrease of local market. ‘As a result, we shifted tables to the main floor which has a higher margin’, MGM China said.