MGM China reports 23pc rise in net profit
Macau casino operator MGM China posted a 23 per cent rise in year-on-year net profit during the six months ended June 30, driven by strong growth in the mass market segment.
Net profit reached HK$3.04 billion, while revenue increased 12 per cent to HK$13.7 billion. The company, which is 51 per cent owned by US-listed MGM Resorts International, announced an interim dividend of HK28 cents per share, compared with HK23 cents last year.
The company said it would continue to reallocate lower performing junket tables to the mass floor, a process which started since the beginning of this year “to maximise our yield”.
During the six months, VIP revenue increased only one per cent from a year ago. The VIP segment in Macau, the world’s largest gambling market, has slowed down its growth since the anti-graft campaign was rolled out on the mainland and this stopped many of the newly rich and government officials from visiting the city.
However, the mass market performance has been robust. MGM said adjusted ebitda margin reached 27.4 per cent in the first half, up from 26.3 per cent previously, driven by record business in the main floor table games segment.
MGM is working on the construction of a complex project on Cotai and is expecting it to open in 2016. The basement work is nearing completion and work is moving to the hotel towers, according to the company.
“We have awarded approximately 50 per cent of the construction contracts of MGM Cotai,” said chief executive Grant Bowie. “And [we will] ensure our customers will be provided with an experience that has never been seen in Macau.”
The company also said it would invest over HK$780 million in MGM Macau, its project on the Macau Peninsula, leading up to the opening of its Cotai resort.