MGM China saw has reported a US$52 million Adjusted Property EBITDAR loss in the three months to 30 June 2022, down from Adjusted Property EBITDAR of US$9 million in 2Q21 and an Adjusted Property EBITDAR loss of US$26 million in the March 2022 quarter.
The substantial losses were driven by a series of COVID-19 outbreaks across mainland China and Macau, which restricted travel across the country and saw border restrictions tightened towards the end of the quarter.
As a result, net revenues fell 54% year-on-year to US$143 million – also down 47% over Q1 – according to information released by MGM China’s parent firm MGM Resorts International Thursday morning (Macau time).
The 2Q22 results included a 29% sequential decline in VIP table games turnover to $684 million, although win of US$24 million was 6% higher than Q1 due to better hold, while main floor table games drop of US$425 million was down 61% sequentially and 79% lower than 2Q19, prior to the COVID-19 pandemic. Win of US$105 million decreased 56% sequentially versus 1Q22.
By property, peninsula IR MGM Macau saw revenue fall 50.5% year-on-year to HK$662.4 million (US$84.4 million) with an Adjusted EBITDA loss of HK$107.7 million (US$13.7 million) reversing EBITDA of HK$171.4 million (US$21.8 million) in 2Q21.
MGM Cotai saw revenue plummet 57.2% to HK$459.7 million (US$58.6 million) while Adjusted EBITDA loss widened from HK$55.4 million (US$7.1 million) in 2Q21 to HK$274.8 million (US$35.0 million).
MGM China’s results were in stark contrast to its parent, which saw net revenues climb 44% year-on-year to US$3.3 billion, while net income of US$1.8 billion compared with US$105 million a year earlier, albeit aided by the deconsolidation of MGM Growth Properties LLC.
The revenue growth was primarily driven by MGM Resorts’ Las Vegas Strip properties, which saw net revenues rise 113% year-on-year to US$2.1 billion, while Adjusted Property EBITDAR grew 108% to US$825 million.