MGM China’s Q4 revenue gained 10 percent, pulled up by the mass market, which benefited from a gain in both volume and hold percentage.
Net revenues were $549 million. Revenue from main floor table games was up 21 percent, helped by a 10 percent increase in volume and a gain in the hold to 21 percent from 19 percent in the same period a year earlier.
VIP revenue fell 5 percent, even though turnover was up 23 percent, as the hold fell to 3.1 percent from 3.7 percent the year before.
Operating income was $43 million compared to $72 million in the prior year quarter, while adjusted EBITDA gained 7 percent to $147 million.
In the U.S. net revenues increased 5 percent over the prior year to $1.9 billion. Net income attributable to MGM Resorts surged to $1.4 billion, including a non-recurring, non-cash income tax benefit of $1.4 billion due to U.S. Tax Reform, compared to $25 million in the prior year quarter.
“We look forward to another rewarding year in 2018,” Chairman and CEO Jim Murren said in a statement. “MGM COTAI, Macau’s most technologically advanced resort opened its doors last week. This year, we will also welcome MGM Springfield in the third quarter, the completion of Park MGM and NoMad by the end of the year, and celebrate many more new and creative ways to entertain our guests at our destinations worldwide.”
The HK$27 billion MGM Cotai opened its doors on Feb. 13. The company said the initial demand and customer feedback to the resort has been positive.
“We are reinventing integrated resort of today,” said MGM China CEO Grant Bowie. “What we recognize globally is the transformation of people’s life to the digital platform. At MGM COTAI we are creating a space that our guests can actively participate and experience the content we offer. We believe MGM COTAI will drive greater product diversification and bring more advanced and innovative forms of entertainment to Macau as it grows as a global tourism destination.”
MGM China Holdings recommended a final dividend for 2017 of $47 million to MGM China shareholders, subject to shareholder approval, bringing the total 2017 dividend to $104 million including the interim dividend paid in September of 2017. If approved, MGM Resorts will receive $26 million, representing its 56 percent share of the dividend.