Macau casino operator MGM China rings up profitable quarter, plans to expand tables, international sales amid recovery

The company reports net profit of US$85.8 million in the second quarter, versus a loss of US$175.5 million in 2022

MGM’s casinos outperformed the overall market in terms of visitation and daily gross gaming revenue, company says

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The MGM Cotai hotel in Macau, pictured in February 2018. Photo: Xiaomei Chen

Published: 4:00pm, 3 Aug 2023Updated: 4:43pm, 3 Aug 2023

Macau casino operator MGM China is planning to expand its international sales and marketing teams and deploy more gaming tables to drive future growth after its business returned to profit in the second quarter amid a recovery across the gaming industry.

The company, controlled by New York-listed MGM Resorts International Holdings, reported a net profit of HK$669.6 million (US$85.8 million) for the three-month period to June, against a loss of HK$1.37 billion over the same period in 2022. Revenues rose from HK$1.12 billion to HK$5.8 billion.

On a six-month basis, net profit amounted to HK$820.9 million, compared with a loss of HK$2.4 billion previously.

To capitalise on Macau’s recovery after the end of border restrictions, the company will deploy more tables at its properties, according to Hubert Wang, MGM China’s president and chief operating officer. “Our July results are very strong and robust,” Wang said. “I am very optimistic on the balance of the year in terms of recovery and the financial results.”

Tourists gamble in the casino at the MGM Cotai in Macau on January 16, 2023. Photo: Yik Yeung-man

MGM China said it outperformed the improving market. In the second quarter, the company’s casinos – MGM Macau and MGM Cotai – saw visitations recover to 95 per cent of its level in the pre-pandemic second quarter of 2019, while the overall market only rebounded to 67 per cent. Daily gross gaming revenue (GGR) reached 98 per cent of the 2019 level at MGM’s casinos, versus 62 per cent for the overall market, MGM said.

MGM China’s stock rose 7 per cent to HK$10.88 in Hong Kong on Thursday and has gained 11.7 per cent since the beginning of the year.