MGM China reports 2022 annual results

8 February 2023

(PRESS RELEASE) -- MGM China Holdings Limited today announced the selected unaudited financial data of the company and its subsidiaries for the three months and 12 months ended 31 December 2022.

Macau and Greater China were under the adverse impact of the COVID-19 pandemic in 2022. Related travel restrictions including tightened safeguard measures and border controls have severely weakened the city's visitation. Macau visitor arrivals were down by 26% year-on-year to 5.7 million, compared to 7.7 million in 2021 and a record 39.4 million in 2019. Visitation from mainland China declined by 28% year-on-year to 5.1 million in 2022.

As a result, market-wide gross gaming revenue was down 51% year-on-year to MOP42.2 billion, approximately 14% of pre-pandemic level in 2019. Operations were temporarily suspended including casino closures at both our properties at certain times during the Year as a result of pandemic outbreak in Macau.

- During the Year, MGM China had net revenue of approximately HK$5.3 billion, compared to HK$9.4 billion previously. The Group recorded negative adjusted EBITDA of approximately HK$1.3 billion, compared to adjusted EBITDA of approximately HK$187 million previously. Occupancy was 34.1% in 2022 compared to 57.2% in the 2021.
- MGM China continued to outperform the market despite the market weakness. The Group's daily GGR in 2022 was 21% of 2019 level, higher than the market's performance. Market share grew further to record-high of 13.7% in 2022, from 12.5% in 2021 and 9.5% in 2019 pre-pandemic time.
- The Group maintained a healthy financial position. As of December 31, 2022, the Group had total liquidity of approximately HK$13.9 billion, comprised of cash and cash equivalents and undrawn revolver.
- The Group was grateful for the team's effort in achieving the outperformance. It also demonstrated our strategic efforts in:
  • casino floor renovation to retain critical mass of players;
  • full hotel product mix including Emerald Villa and The Mansion tailored for high-end players;
  • various marketing efforts in producing quality programs, exhibitions, calendar of events and promotions to attract new visitors and players; and
  • continued improvements in service levels and operation efficiency.
- In December, MGM Grand Paradise Limited ("MGM Grand Paradise") was awarded the new 10-year gaming concession contract, effective January 1, 2023. Under the gaming concession, MGM Grand Paradise is entitled to operate a total of 750 gaming tables and 1,700 slot machines, compared with 552 gaming tables and 1,701 slot machines previously. Along with our effort and commitment in enhancing customer experience, we look forward to further growth in the market.

In November, electronic applications of individual and group travel visas to Macau for mainland China residents resumed while other travel restrictions started to substantially eased in December. Mandatory isolated quarantine for all inbound visitors was scrapped, followed by cancelation of nucleic acid test requirement for visitors from mainland China, Hong Kong and Taiwan as well as Hong Kong-Macau ferry resumption in January this year. These paved the way for a recovery for Macau.

The total visitor arrivals have significantly increased in January. The daily average Macau visitation during Chinese New Year (CNY) increased to over 64,000 for January 21-27, compared to the average of approximately 14,500 in fourth quarter last year. Visitation hit over 90,000 on January 24 or the third day of CNY.

The ease of travel restrictions to Macau also boosted the market GGR. GGR more than tripled month-on-month or jumped 83% year-on-year to MOP11.6 billion in January.

Kenneth Feng, President, Strategic & Chief Financial Officer of MGM China said: "We are excited to see a market rebound in 2023 as our guests are returning in force. The relaxation of travel restrictions and the entertainment events organized during CNY resulted in strong visitation to Macau and our properties. We see the encouraging results as validation in our confidence in the Macau market's recovery and long-term viability upon which our retendering commitments are built.

"As we look beyond the strong January and CNY, we are highly confident in the trajectory for Macau and MGM China. We will stay dedicated to fulfilling our commitments to the Macao SAR government, demonstrate further strength in the integrated tourism and leisure industry and continue to make contributions to Macau," said Kenneth Feng.

Related Links
MGM Resorts International Gaming Vendor Information

Featured Vendors
Oklahoma Indian Gaming Association (OIGA) Conference
Rymax Marketing Services, Inc.
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: August 12-14, 2024 Oklahoma City
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
Imagine This
TribalHub
Imagine This
Imagine This #1 Source for Player Gifts. Over $50 million in stock ready to ship! Let us serve you!
TribalHub
25th Annual TribalNet Conference Sept 16-19, 2024 Westgate Las Vegas
Sunkist Graphics, Inc.
Casino City Press
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Casino Schedule Ease
Global Gaming Expo (G2E)
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
Global Gaming Expo (G2E)
The largest gathering of global, commercial and tribal gaming professionals in North America.
Dable Advisory & Consulting Services
Texas Slots & Gaming
Dable Advisory & Consulting Services
Advisory & consulting services services for Indigenous entrepreneurs, businesses & organizations
Texas Slots & Gaming
Wholesale gaming reimagined. Texas Slots & Gaming is your sustainable gaming partner.
Top One Tech Limited
Shenzhen ZhengYuanTai Technology Co., Ltd.
Top One Tech Limited
Global Touch solution partner of choice, 10+ years OEM manufacturing, 100,000+ units application
Shenzhen ZhengYuanTai Technology Co., Ltd.
14 years experienced gaming display manufacturer: open frame, curved, and halo monitors
Regulatory Management Counselors, PC
Players Pal
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
Players Pal
Revolutionize the way you connect with your casino players with the Players Pal mobile app
Betson Imperial Parts & Service
Talisman Group Creators of EZ Baccarat
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
Talisman Group Creators of EZ Baccarat
With over 800 tables in 150+ casinos, EZ Baccarat is the number one brand in baccarat.
AmericanChecked
Slot Machines Unlimited
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
Indian Gaming Association's Mid-Year Conference & Expo
Indian Gaming Association's Mid-Year Conference & Expo
The perfect combination of learning, networking & sharing ideas on today's hottest topics in gaming


Your Guide to 14,960 Gaming Industry Suppliers