MGM China posts better than expected EBITDA

Casino operator MGM Resorts International reported better than expected results for the three months ended September 30, 2016.

According to a press release from the company, the Las Vegas based operator said it had delivered the best quarter in terms of net revenue and adjusted property EBTIDA generated by its domestic results.

The parent firm posted overall net revenue of $2.5 billion in 16Q3, up from $2.3 billion in the prior year period. Casino revenue came in at $1.3 billion, up from $1.2 billion in 15Q3.

Adjusted property EBITDA totalled $753.9 million, up from $602.5 million in the 15Q3.

As for its Macau operations, MGM China posted above expectations adjusted property EBITDA, which increased to $149.9 million in the third quarter of 2016, up from $128.2 million in the prior year quarter.

“Not only did performance in Las Vegas top expectations, but Adjusted Property EBITDA in Macau increased 16 percent year-on-year to $150 million in 16Q3, well above the Consensus estimate of $109 million,” said Union Gaming in a note on Tuesday.

“The results were driven by a 21 percent year-on-year increase in mass market revenue and a 575 bps improvement in margin due to the greater mix of mass market revenue and cost savings initiatives.”

Commenting on the latest financial results, MGM Resorts CEO Jim Murren said “MGM Resorts produced a tremendously strong quarter, delivering the best net revenues and Adjusted Property EBITDA at our domestic resorts since 2007.”

MGM China’s main floor table games revenue increased 21 percent compared to the prior year quarter, and hold percentage decreased to 3.0 percent in the current year quarter, compared to 3.7 percent in 15Q3.