MGM China ends 2022 with loss of over USD 666.5M

The gaming company’s operating revenue was HKD5.269 billion for 2022, 44 per cent lower than it was a year earlier, and 76.9 per cent lower than the pre-pandemic levels.

The fall was primarily due to the “continued adverse impacts of Covid-19”, which led to travel restrictions, as well as “a cessation of VIP operations” in partnership with revenue-sharing gaming promoters, the group noted in a filing to Hong Kong’s stock exchange.

Gross casino revenue decreased by 88.8 per cent year-on-year to HKD5.578 billion in 2022, while gross gaming revenue from the mass market and VIP guests were down 90 per cent and 10 per cent respectively.

Driven by the premium mass market which both MGM Macau and MGM Cotai are “well positioned to capture”, the group’s overall gaming market share increased to 13.7 per cent for the year ending December 31, 2022.

As at December 31, 2022, the group’s cash and cash equivalents, available undrawn unsecured credit facilities, and revolving credit facility stood at HKD6.71 billion, HKD1.37 billion and HKD5.85 billion respectively.

MGM China said that the group remained optimistic about the long-term growth of the Macau market, due to several reasons including investment committed to non-gaming offerings, infrastructure improvements in Macau and the Greater Bay area, continued growth in outbound tourism from mainland China, as well as strong efforts to promote Macau by both local and mainland Chinese authorities.

MGM China also added that the gradual easing of travel restrictions in December 2022 had seen a “significant increase in visitation”.

Macau’s gross gaming revenue for January this year increased by 232.6 per cent to HKD11.2 billion compared to the previous month.

By Therese Tu