MGM China (2282) H1 2024 earnings summary

Executive summary

• Operating revenue for the six months ended June 30, 2024 rose 52.3% year-over-year to HK$16,218.0 million, driven by strong recovery in Macau tourism and gaming activity following the relaxation of travel restrictions and increased market share.

• Profit attributable to owners surged to HK$2,685.5 million from HK$820.9 million, reflecting improved operational performance and higher market share.

• Adjusted EBITDA increased 56.6% to HK$4,948.0 million, with both MGM MACAU and MGM COTAI contributing significant growth.

• No interim dividend was declared, but special and final dividends totaling HK$1,341 million were paid or declared during the period.

Financial highlights

• Casino revenue rose 47.5% to HK$14,162.2 million, with main floor table games win up 63.9% and VIP gross table games win up 27.4%.

• Other revenue (hotel, F&B, retail, entertainment) nearly doubled to HK$2,055.7 million, led by 89.8% growth in hotel rooms and 111.3% in F&B.

• Operating profit reached HK$3,522.3 million, up from HK$1,866.6 million year-over-year.

• Basic EPS was HK70.6 cents, up from HK21.6 cents.

• Net cash generated from operating activities was HK$4,256.8 million, with cash and cash equivalents at HK$5,214.5 million as of June 30, 2024.

Outlook and guidance

• Management remains optimistic about Macau’s long-term growth, citing infrastructure improvements, government support, and continued investment in non-gaming and international tourism.

• The company is committed to a HK$19.1 billion investment plan, with 91% allocated to non-gaming and international tourism projects.

• Focus remains on premium mass market, international tourism, and expanding non-gaming offerings.