MGM China (2282) H1 2026 earnings summary

Executive summary

• Operating revenue rose 4.4% year-over-year to HK$17,391.8 million for the six months ended June 30, 2026, driven by premium mass market strength and diversified offerings.

• Profit attributable to owners decreased 20.2% to HK$1,900.8 million, mainly due to higher operating costs and lower VIP gaming revenue.

• Adjusted EBITDA was HK$4,784.4 million, down 1.9% year-over-year, reflecting resilient core operations despite increased expenses and a shift in revenue mix.

• The Group completed the acquisition of MGM Asia Pacific Limited, expanding its hospitality business into the Chinese Mainland.

• Interim dividend of HK$0.250 per share (HK$950 million total) declared, representing 50% of profit attributable to owners.

Financial highlights

• Casino revenue increased 3.6% to HK$15,116.8 million, with main floor table games win up 9.8% and slot machine gross win up 23.0%.

• VIP gross table games win declined 30.5% year-over-year, reflecting lower win percentages and turnover.

• Other revenue (hotel, F&B, retail, entertainment) grew 10.2% to HK$2,275.0 million, driven by higher non-gaming business volumes.

• Operating costs rose across all major categories: gaming taxes up 5.5%, staff costs up 11.7%, other expenses up 27.4%, inventories up 11.2%, and depreciation up 18.0%.

• Earnings per share: Basic HK50.1 cents, Diluted HK49.9 cents (down from HK62.8 and HK62.5 cents, respectively, in 2025).

Outlook and guidance

• Management remains optimistic on Macau’s long-term prospects, citing infrastructure improvements, supportive government policies, and growing tourism from the Chinese Mainland.

• The Group continues to invest in non-gaming and international tourism initiatives, aligning with Macau’s diversification strategy and government goals.