MGM China Holdings Limited announced its revenue declined by 78% to HKD5.1bn for the year that ended 31 December 2020. For the period, the group recorded a negative adjusted EBITDA of approximately HKD1.4bn. According to the statement, the Covid-19 pandemic had a severe impact on the company.
Despite tourism picking up with the easing of quarantine measures between Macau and mainland China, the overall hotel occupancy in Macau was down from 91% in 2019 to 29% in 2020. Gross gaming revenue (GGR) dropped by 79% to the lowest level in 14 years.
MGM China reported total revenue of HKD2.4bn for Q4, a 550% increase from Q3. Adjusted EBITDA for the period was HKD367.2m, against HKD730.6m loss for Q3. EBITDA for MGM Macau was HKD247.1m, while MGM Cotai reported HKD120.1m. Market-wide GGR for Q4 declined by 70% year-on-year, compared with a 93% year-on-year decline in Q3. But hotel occupancy for Q4 increased to 57%. With an increasing number of visitors, additional suites will be constructed in MGM Cotai, with the expected launch set for mid-2021.
“We are pleased to see MGM China turned profitable again driven by strong market share gains and continued cost mitigation efforts,” said president and COO of MGM China Hubert Wang. “We expect the broader rate of business recovery will continue to be gradual, driven by the premium mass market.”
He added: “MGM China will continue to invest in strengthening our market position, and continue to believe in the long-term success of Macau. We have been committed to supporting Macau as a world tourism destination. We look forward to working with the government through the licensing renewal process in hopes to further our support for many more years to come.”