MGM China 17Q1 revenue gains on mass hold increase

MGM China reported a 7 percent gain in net revenue for 17Q1, driven mainly by an increase in main floor table game revenue due to a higher hold percentage.

The company had revenue of $502.4 million in the period. Revenue from main floor table games rose 17 percent to $279.9 million with the hold percent gaining to 22.2 percent, compared with 18 percent in the prior year’s quarter.

VIP table games saw a decline of 5 percent to $170 million. Overall casino revenue gained to $493.7 million from $459 million the prior year, while non-casino revenue slipped to $27 million from $29.5 million.

MGM China’s Adjusted EBITDA for the three months ended March 31, 2017 and 2016 was $143 million and $114 million, respectively. The adjusted EBITDA margin increased 413 basis points to 28.5 percent in the current year quarter as a result of an increase in main floor table games mix and cost reduction efforts.

MGM operates one property in Macau and is scheduled to open its new Cotai venue in the second half of this year, which will effectively double its footprint in Macau.

Overall group revenue gained 23 percent in the quarter to $2.7 billion, driven by the Borgata acquisition on August 1, 2016, the opening of MGM National Harbor on December 8, 2016, and the growth in Macau, in which MGM Resorts has a 56 percent stake.