MGM China announces Special Dividend per share for fiscal year 2023

As the second Macau concessionaire to restart dividend payments following the start of the COVID-19 pandemic, MGM China Holdings Ltd. has announced a Special Dividend of HK$0.104 per share for the fiscal year 2023.

This dividend announcement was included in MGM China’s 2023 final results release, which was made public on Thursday. The results showed a profit of HK$2.64 billion (US$337.4 million) attributable to the company’s shareholders, a significant turnaround from the HK$5.23 billion (US$669 million) deficit revealed the year before.

According to MGM China, the Special Dividend represents 15% of the group’s profits, or HK$395.2 million (US$50.5 million).

The parent company MGM Resorts released its own results shortly after the finalized results for FY23 were made public. HK$21.8 billion (US$2.79 billion) in casino revenue represents a 391% year-over-year increase, and adjusted EBITDA of HK$7.24 billion (US$926 million) represents a significant improvement over the HK$1.27 billion (US$162 million) loss reported in 2022.

After assessing the company’s financial situation as of March 21, 2024, the board of MGM China declared the Special Dividend and suggested that the Final Dividend be paid. After paying dividends, they discovered that the company had enough cash on hand to support operations and future business ventures, pending shareholder approval.

A US$750 million revolving loan agreement granted by its parent company was also terminated by MGM China recently because to the notable rebound in 2023, which produced record-breaking EBITDA for both the entire year and the December quarter.

Before, just one concessionaire in Macau, Galaxy Entertainment Group, had started paying dividends to its stockholders. Analysts predict that until 2025, more concessionaires won’t likely follow suit.

Original story by: IAG