In the third quarter of 2024, MGM China Holdings Ltd. announced impressive financial results that reflect the steady resurgence of Macau’s gaming industry. The Macau-based subsidiary of MGM Resorts International reported an all-time high in quarterly revenue for Q3, signaling growth across its properties, MGM Macau and MGM Cotai. MGM China’s third-quarter revenues reached approximately HKD7.25 billion (US$929 million), showing a 14% increase year-on-year, though an 8.9% sequential drop from Q2.
Adjusted earnings before interest, taxes, depreciation, amortization, and rent (Adjusted Property EBITDAR) also reached a third-quarter peak at HKD1.98 billion (US$255 million), a 5% increase from the previous year but 18.8% lower compared to Q2 of 2024. Despite the quarterly decline, MGM China remains optimistic about the overall trajectory, with steady year-on-year improvements marking continued recovery in Macau’s tourism and gaming markets.
Property-Specific Performance and Revenue Growth
Examining performance by property, MGM Cotai saw the most robust year-on-year growth in the third quarter. Revenue for this location rose by 20.8% to HKD4.21 billion (US$542 million), though it declined by 10.4% from the previous quarter. Adjusted EBITDAR at MGM Cotai also increased significantly, up 17.8% from Q3 2023 to reach HKD1.18 billion (US$152 million), despite a drop from Q2 2024 figures.
At MGM Macau, revenues climbed to HKD3.04 billion (US$391 million) for the third quarter, a 5.8% increase from the prior year but a 6.7% drop compared to the previous quarter. Adjusted EBITDA for MGM Macau decreased by 9% year-on-year, down to HKD801.5 million (US$103 million), and showed an 18.6% drop sequentially. The property’s performance underlines the mixed quarterly dynamics across MGM China’s portfolio, with sequential fluctuations but an overarching upward trend.
MGM China’s management expressed satisfaction with the recovery rate in Macau, which has shown remarkable improvement compared to pre-pandemic metrics. “MGM China continues to outperform industry recovery compared to pre-COVID levels,” noted the company in a statement cited by GGRAsia, adding that visitor numbers were up 65% from last year and represented 157% of 2019 visitation levels.
Macau Gaming Market and Strategic Developments
Driven by increasing visitor activity and gaming demand, MGM China reported a strong rise in both daily gross gaming revenue (GGR) and mass GGR. For the first nine months of 2024, daily GGR surged 40%, while mass GGR saw an even higher increase of 46% year-on-year. These metrics also exceeded pre-pandemic levels, reaching 129% of 2019’s daily GGR and 180% of its mass GGR.
The company’s year-to-date market share of Macau’s GGR stood at 15.9%, a noticeable increase from 9.5% in 2019, illustrating MGM China’s growing presence within the region’s competitive landscape. Kenneth Xiaofeng Feng, President and Executive Director of MGM China, highlighted ongoing investments in property improvements to meet the evolving demands of visitors. “These initiatives include the renovation of our MGM Macau villas and converting some hotel rooms at MGM Cotai into suites,” Feng stated. Additionally, MGM China is preparing to unveil a new residency show, “Macau 2049,” set to launch later this year, which is anticipated to further enhance visitor engagement and drive organic growth.
Corporate and Financial Moves by MGM Resorts
Parent company MGM Resorts also highlighted the significance of MGM China’s performance within its broader quarterly results, which showed group-wide net income of US$184.6 million on total revenue of US$4.18 billion, a 5.3% increase year-on-year. Consolidated Adjusted EBITDAR reached a new record at US$1.1 billion, supported by robust contributions from MGM China.
“We are pleased to report record consolidated net revenues for the third quarter, driven by record results from MGM China,” said MGM Resorts CEO Bill Hornbuckle, who underscored the importance of the company’s stronghold in Macau. Beyond Macau, MGM Resorts’ future growth strategy includes expansion into new markets, with plans for integrated resort developments in Japan and prospective opportunities in New York.
To provide additional value to shareholders, MGM China resumed dividend payments in March 2024 after a pandemic-driven hiatus. In August, the company declared a special dividend, amounting to over HKD1.34 billion, reflecting MGM China’s commitment to rewarding investors as it continues to navigate the path of financial recovery and expansion.
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