Macau casino operator MGM China’s 2017 profit narrowly misses analysts expectations
The company is betting big on its newly opened MGM Cotai to lure premium mass market consumers
MGM China Holdings, one of Macau’s six major casino operators, posted net profits of HK$2.3 billion (US$294 million) for 2017, down 23 per cent from 2016, narrowly missing analysts estimates of HK$2.4 billion in a Reuters poll.
“Profit decreased … 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 said in a statement on Tuesday.
Revenue hit HK$15.4 billion, up 3 per cent from HK$14.9 billion from the previous financial year. MGM China also proposed a final dividend of HK$0.097 per share.
MGM China’s operating profit decreased 15.3 per cent to HK$2.6 billion, primarily due to the “acceleration of pre-opening costs” of HK$459 million in preparation for MGM China’s new property MGM Cotai, which opened last week.
MGM Cotai is the company’s first project in Macau’s Cotai area – a strip crowded by a number of established casinos and resort operators including Sands China, Galaxy Entertainment Group and Wynn Macau.
