MGM China Q2 Revenue Declines Due to Slow VIP Play
Revenue from casino operator MGM China Holdings Ltd fell 1% year-over-year to $828 million in the second quarter of 2014, as VIP play lost steam in Macau during the period.
According to a statement on Tuesday from MGM Resorts International, MGM China’s only casino, VIP table game sales fell 18% at MGM China’s only casino, “due to a 10% year-over-year decline in VIP table game sales and a 2.7% lower retention rate in the current quarter compared to 2.9% year-over-year.”
Official data showed that Macau VIP segment’s market-wide sales declined 5.8% in the second quarter year-over-year.
MGM China’s performance was driven by growth in its mass market segment. Main floor table game sales rose 41% year-over-year in the three months to June 30, the company said.
This is above the overall market average for the period. Sales at Macau mega-market Baccarat rose 35.3% year-on-year from April to June.
For the second quarter of 2014, the group’s overall net income was $2.6 billion, an increase of 4% year-over-year.
The company said the growth was boosted by a 6% year-over-year increase in casino revenue from MGM Resorts’ fully owned properties in the U.S.
The Las Vegas-based company said net income came in at $105.5 million, or $0.21 per share, compared to a loss of $93 million, or $0.19 per share, a year ago. Analysts polled by Thomson Reuters had expected $0.10 for the period.
MGM Resorts joined rival Wynn Resorts Ltd to report an increase in gambling in Las Vegas in the three months to June 30.
“We are pleased to report another solid quarterly growth for MGM Resorts,” CEO Jim Muren said in a statement. “Our domestic business was very strong in Las Vegas, with 12% growth in pre-interest, tax, depreciation and amortization earnings (EBITDA), driven by strong performance in both the guest room and casino segments. In Macau, the revenue contribution of our key floor businesses has led to growth in cash flow and margins, while our City Center Resorts operations continue to improve,” he added.
MGM China’s adjusted EBITDA for the second quarter of 2014 was $210 million, up 3% Y/Y.
Also Tuesday, MGM China’s board of directors announced a dividend of US$136 million to be distributed on Sept. 1.
BY: 바카라사이트