MGM China revenues fall 95 pct in Q2

2020-07-31 17:38     Comment:0

MGM China's net revenues fell 95 percent year-on-year to US$33 million (US$261 million) in the second quarter of this year, the Hong Kong-listed US gaming operator said in a statement today. 

The statement said the steep decline was "a result of ongoing travel and entry restrictions in Macau as well as other operational restrictions related to the [COVID-19] pandemic. 

According to the statement, the company recorded an adjusted property EBITDA loss of US$116 million in the second quarter. Main floor table games win dropped 97 percent year-on-year. VIP table games win declined 96 percent. 

The company's first-half total revenue decreased 79.0 percent year-on-year to HK$2.37 billion, while total adjusted EBITDA recorded a loss of HK$1.0 billion. 

The statement noted that MGM China’s controlling shareholder, MGM Resorts International, is a company listed on the New York Stock Exchange in the United States, noting that MGM Resorts International beneficially owns approximately 56 percent of the issued share capital of MGM China. 

A separate statement by MGM China Holdings Limited said that the company "maintains a healthy financial position" and is "excited about reopening of Macau."

The statement noted that the company's first-half "results were severely impacted by the COVID-19 pandemic, and we continue to be impacted today."

According to the statement, the company's total liquidity amounted to HK$11.4 billion as of June 30.

"As part of [our] business relaunch, we have introduced 'MGM Mixy-Go-Matchy' offerings, including bespoke hospitality packages, enhanced food and beverages options and cultural entertainment," the statement said. 

The statement quoted Hubert Wang Zi Qi, president and COO of MGM China, as saying that "while we focus to contain our costs, we are rolling out programmes to drive traffic and prepare for gradual recovery." 

MGM China owns two of Macau's 41 casinos, MGM MACAU and MGM COTAI. 

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