MGM China (2282) H2 2024 earnings summary

Executive summary

• Operating revenue rose 27.2% year-over-year to HK$31.39 billion, driven by post-pandemic recovery and increased visitation to Macau.

• Profit attributable to owners surged 74.5% to HK$4.60 billion, reflecting strong operational performance and higher gaming activity.

• Adjusted EBITDA increased 25.2% to HK$9.06 billion, with both MGM MACAU and MGM COTAI contributing significant growth.

• Final dividend of HK$0.251 per share and two special dividends declared, totaling HK$2.69 billion in distributions for 2024.

Financial highlights

• Casino revenue grew 25.0% to HK$27.28 billion; other revenue (hotel, F&B, retail) up 43.4% to HK$4.10 billion year-over-year.

• Operating profit rose 35.4% to HK$6.16 billion; basic EPS increased to HK121.1 cents from HK69.4 cents.

• Net cash generated from operating activities was HK$8.27 billion; cash and cash equivalents at year-end were HK$5.32 billion.

• Gearing ratio improved to 97.0% from 107.4% as net debt declined.

Outlook and guidance

• Management remains optimistic on Macau's long-term growth, citing infrastructure improvements and government support for tourism.

• Committed to MOP19.7 billion investment over concession term, with 91% allocated to non-gaming and international tourism projects.

• Focus on premium mass market, non-gaming diversification, and international customer acquisition.