MGM China reported an Adjusted property EBITDAR loss of US$116 million in the three months to 30 June 2020 as revenue from its Macau IRs plummeted 95% year-on-year to just US$33.2 million.
The results, which formed part of parent company MGM Resorts’ 2Q20 results release, follow a decline in visitation to Macau to near zero during the quarter as a result of border restrictions due to COVID-19. Those restrictions have been gradually eased since 15 July.
MGM China’s revenue of just US$33.2 million (HK$257.3 million) for the quarter was down from US$715 million (HK$5.54 billion) in 2Q19 and included revenue of US$18 million (HK$139.8 million) from MGM Cotai and US$15.2 million (HK$117.5 million) from MGM Macau.
All market segments were heavily hit, with VIP table games turnover down 96% from US$10.96 billion to just US$450 million, while mass table games fell 97% from US$2.04 billion in the second quarter of 2019 to US$66 million.
MGM China cited monthly cash outflow of US$65.1 million throughout the quarter, of which US$38.8 million was run-rate operating cash outflow. The company added that it drew down US$400 million on its US$1.25 billion MGM China revolving credit facility, with outstanding debt currently sitting at US$2.5 billion.
On current liquidity of US$1.5 billion, the company said it could support over 22 months of “near zero” revenue in Macau.
Parent company MGM Resorts saw its consolidated net revenues decline 91% to US$290 million, with a net loss of US$857 million and Adjusted EBITDAR loss of US$492 million.
“The near term operating environment will remain challenging and unpredictable as COVID-19 case trends, health and safety protocols, and travel restrictions continue to heavily impact our business,” said newly appointed CEO and President of MGM Resorts, Bill Hornbuckle.
“We remain focused, flexible, and disciplined in navigating this evolving landscape while continuing to pursue our long term growth opportunities, supported by our strong liquidity position. As such, we remain excited about our integrated resort opportunity in Osaka, expanding our footprint in Macau, and positioning BetMGM as a leading player in the US sports betting and iGaming markets.”