MGM China, operator of integrated resorts MGM Macau and MGM Cotai, reported an Adjusted Property EBITDAR loss of US$55 million in the three months to 31 December 2022, widened from the US$5 million in 4Q21 but narrowed from the US$70 million loss in the September 2022 quarter.
The Q4 results formed part of parent company MGM Resorts’ financial results, published early Thursday morning Macau time, with group-wide net revenues growing 18% year-on-year to US$3.6 billion.
MGM’s Macau operations generated revenues of US$175 million in the December quarter, down 44% year-on-year but up from just US$87 million in 3Q22.
Highlighting the company’s steady recovery compared with Q3, MGM China reported a 199% quarter-on-quarter increase in VIP table games turnover to US$980 million and a 9% increase in VIP win to US$19 million, while main floor table games drop grew 81% sequentially to US$638 million with win up 101% to US$152 million.
MGM also touted a return to profitability in January 2023, driven by strong Chinese New Year results from the premium mass segment.
Despite parent company MGM Resorts falling to a US$2 billion loss in 4Q22 due primarily to a US$1.2 billion increase in non-cash amortization expense relating to the MGM Grand Paradise gaming sub-concession, the company’s CEO and President Bill Hornbuckle expressed confidence in the months ahead.
“We achieved our fifth consecutive quarter of record-breaking Las Vegas Strip Resorts Adjusted Property EBITDAR in the fourth quarter,” Hornbuckle said.
“What we accomplished in 2022 is nothing short of remarkable, and is a testament to our strategic plan, scale, brand strength, talented team, loyalty program, and the diverse geographies and channels in which we operate. We believe that there is strong momentum in our business and our 2023 outlook remains bright, driven by a robust events calendar domestically, MGM China’s rapid year-to- date return to profitability and BetMGM’s ongoing improvement in 2023.”