MGM China Reports 9% Revenue Drop in 1Q2022 Due to Travel Restrictions

May 4, 2022 Macau Earnings & Filings Industry Updates

The top developer and operator of gaming venues and resorts in the Greater China region MGM China Holdings Limited (MGM China) have reported its Q122 results. According to data provided by its parent company MGM Resorts International, MGM China recorded a revenue of $268 million in the first quarter of the year that ended on March 31. The number represented a 9% year-on-year decrease compared to the same period of 2021.

The revenue was also 63% lower compared to the first quarter of 2019 and 15% lower compared to the fourth quarter of 2021. The explanation for the revenue drop is attributed to the ongoing entry and

travel restrictions imposed on the company’s Macau properties, MGM Macau and MGM Cotai.

MGM China Also Recorded a Drop-in EBITDAR
The earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) also recorded a $26 million decrease compared to $5 million in the first quarter of 2021 and $11 million in the fourth quarter of 2021. The company mentioned a litigation reserve charge of $18 million in the context of its potential junket-related debts following the collapse of the junket industry in Macau in the past few months. The company recorded a turnover drop of 45% to $963 million for VIP table games on a quarter-on-quarter basis. The win also went down 55%, reaching $23 million, while the main floor table games decrease was 6% compared to the fourth quarter of 2021.