MGM China´s adjusted EBITDA loss continues to broaden

According to a filing to the Stock Exchange of Hong Kong this morning, the gaming company also suffered an adjusted property EBITDAR loss of USD70 million for the three months to September, a further reduction from the second quarter’s USD52 million.

As for casino revenue, the group brought in USD70 million between July and September, down 72 per cent from USD252 million in the same period last year.

Late in June, a domestic cluster of Covid-19 cases forced all local casinos to shut down for 12 days alongside most of the city’s major businesses. The gaming company is pinning its hopes on a highly-anticipated return of tourists from across the border after the resumption of electronic visas for individual or group travel to Macau on the Chinese mainland earlier this week.

“We expect the travel relaxation measures will drive a gradual recovery in visitation. We look forward to participating in the future development of Macau,” said Kenneth Feng, President, Strategic & Chief Financial Officer of MGM China, citing that daily visitor arrivals in Macau fell 44 per cent last quarter from a quarter earlier.

The group’s unaudited financial results also show that total revenue for MGM China stood at HKD687 million in the three months to September, down 37.5 per cent from HKD1.1 billion a quarter earlier, and down 69 per cent from HKD2.25 billion compared to the same period last year.

However, the gaming company maintained that it is in a “healthy financial position”, with liquidity of about HKD9.9 billion, including cash, cash equivalents and undrawn revolvers.

By Aries Un