Las Vegas lifts MGM Q2 earnings, pushes Cotai

    MGM Resorts International reported solid growth for the quarter ended June 30, 2014, beating analyst expectations. Net revenue was up 4 percent from the year ago quarter to $2.6 billion, while EBITDA rose 12 percent, with adjusted property EBITDA at $643 million, an 8 percent increase.

    In the earnings filing to the HK stock exchange MGM China pushed the opening of the Cotai property to some time in Y16 from the previous estimate of “early 2016,” a move analysts attribute to Macau’s notable labor shortages and the pacing of the IR openings in the pipeline. 

     

    According to the same note MGM China’s net revenue declined 1 percent to $828 million. though adjusted EBITDA was $210 million, a 3 percent increase compared to the prior year quarter. Main floor table game revenue at MGM China rose by 41 percent, while VIP table game revenue decreased by 18 percent with a lower hold rate of 2.7 percent compared with 2.9 percent in the prior quarter. Operating income was $134 million compared to $126 million in the prior year quarter.

    Staff costs at MGM Macau increased by 19 percent YOY in H114, due to a combination of additional staff and increases in base salaries. The company announced a “14th month” summer bonus similar to other operators, but has not yet committed to pay that through 2017.
    MGM China’s Board announced a dividend of $136 million which will be paid to shareholders on or around September 1, 2014, of which MGM Resorts International will receive $69 million, representing its 51 percent share.