Q1 2025 earnings of MGM China indicate sustained expansion
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In the first quarter of 2025, MGM China triumphantly revealed the outcomes of its financial venture, displaying a sequential growth and amplified market presence as Macau's travel and gambling sectors spring back to life.
Boasting a net revenue of HK$8.0 billion (or US$1.3 billion), the company witnessed a modest increment of 1% compared to the previous quarter and attained an impressive 139% of the Q1 2019 figures.
A more noteworthy leap in their Adjusted EBITDA, reaching HK$2.4 billion, equated to a substantial 11% quarter-over-quarter surge and a formidable 146% of pre-pandemic levels. The firm's EBITDA margin also showed improvement, escalating from 26.8% to 29.6%.
The broader recovery of Macau, with average daily traveler footfall skyrocketing by 12% from the preceding quarter to 109,585 and now standing at 95% of Q1 2019 levels, played a significant role in bolstering this growth. MGM China distinguishes itself, as its property visitation surged to a striking 177% of its pre-COVID benchmark.
Gaming performance also shone, with daily gross gaming revenue (GGR) reaching 128% of Q1 2019 levels. The surge in mass market GGR (including slots) spiked to an impressive 183%, whereas VIP GGR settled at 43%. MGM China strengthened its position, edging up its GGR market share to 15.7%, in contrast to the 15.5% seen in the previous quarter.
Confirming their optimism for the future, MGM China updated its dividend policy during the quarter, raising the possible repayment rate from 35% to 50% of anticipated consolidated annual profits. Payments will now be disbursed semi-annually, allowing for special dividends.
In contrast, parent company MGM Resorts International reported a 2% revenue decline to US$4.3 billion and a steep 37% drop in net income to $149 million for the same period.
MGM China's success within the broader gaming arena in Macau is noteworthy, as April GGR reached MOP 18.59 billion (or US$2.32 billion), marking a 1.7% year-over-year advancement and the third consecutive month of progress in the region.
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- In the financial industry, MGM China highlighted its growth trajectory in 2025, reporting an impressive 139% increase in Q1 revenue compared to the same quarter in 2019.
- The average daily traveler footfall in Macau rose by 12%, contributing to MGM China's property visitation surging to 177% of its pre-COVID benchmark.
- MGM China's success was further underscored by its Gaming performance, with the daily GGR reaching 128% of Q1 2019 levels and the surge in mass market GGR spiking to 183%.
- Positioning itself for future growth, MGM China updated its dividend policy in 2025, raising the possible repayment rate from 35% to 50% of anticipated consolidated annual profits, a notable difference from parent company MGM Resorts International's 2% revenue decline during the same period.
