MGM China Revenue Up 6% To $748m

MGM China Holdings Ltd has released its financial results for the first-quarter of 2013, revealing a 6% rise in net revenue to $748 million, while its EBITDA, too, was up by 9.7% to 180.5 million.
Accounting for the solid Q1 results was an all round improvement in main floor table games and slots revenues, with VIP-room gambling tables up by 15% from a year earlier, main-floor tables up by 26% and slot machines by 19%. Commenting on the impressive figures, Research firm Union Gaming Research Macau, explained:
“All segments of MGM China’s business (VIP, mass tables, and slots) continue to grow generally at or above market-wide rates, which is impressive in the context of being a single asset operator that is capacity-constrained on the Macau peninsula.”
Nevertheless, MGM China is planning on opening up another resort in the Cotai district of Macau by 2016, as it seeks to stave off increased competition from its rivals, which includes Sands China Ltd, Galaxy Entertainment Group Ltd and Melco Crown Entertainment Ltd.
Meanwhile, gaming giant MGM Resorts International (MGM), which own 51% of MGM China, posted a first-quarter profit on the solid results coming from Macau, as well as its Las Vegas operations. During the period, revenue increased by 2.8% to $2.35 billion, while a profit of $6.6 million was recorded compared to a loss of $217.3 million for the same period a year ago.
As Chief Executive Jim Murren explains: “Our first quarter 2013 results are the best we have reported since the beginning of the downturn five years ago, led by improved results at our Las Vegas Strip resorts, a record first quarter at MGM China and an all-time record at CityCenter. MGM Resorts International returned to profitability in the quarter and we are excited about our future.”