MGM China Delivers 4.4 % H1-2026 Revenue Growth but Profit Slips 20 %; HK$0.25 Interim Dividend Declared

Bulletin Express09-03 17:05

MGM China reported first-half 2026 operating revenue of HK$17.39 billion, up 4.4 % year on year, driven by resilient mass-market play and stronger non-gaming contributions. Nevertheless, profit attributable to shareholders fell 20.2 % to HK$1.90 billion as cost inflation, higher licence and marketing fees and softer VIP business diluted margins.

Adjusted EBITDA eased 1.9 % to HK$4.78 billion, while operating profit contracted 20.7 % to HK$2.68 billion. Basic earnings per share declined to HK50.1 cents from HK62.8 cents.

The Board declared an interim dividend of HK$0.250 per share, equivalent to a HK$950.00 million payout—approximately 50 % of attributable profit. The register will close on 24 August 2026; payment is scheduled for 3 September 2026.

Casino revenue rose 3.6 % to HK$15.12 billion. Main-floor table win advanced 9.8 % to HK$16.55 billion on a stronger hold rate, while VIP table win slid 30.5 % to HK$1.70 billion amid lower turnover and win percentage. Slot machine win grew 23.0 % to HK$1.34 billion. Combined market share was 15.9 %, marginally below 16.2 % a year earlier.

Property level EBITDA showed mixed trends: MGM COTAI increased 4.2 % to HK$3.13 billion, offsetting a 11.8 % decrease at MGM MACAU to HK$1.66 billion. Group non-gaming revenue (hotel, food & beverage, retail and entertainment) expanded 10.2 % to HK$2.28 billion.

Liquidity remains solid with HK$4.03 billion in cash and HK$20.70 billion of undrawn credit lines at 30 June 2026. Net debt fell to HK$13.24 billion, trimming the gearing ratio to 77.6 % from 81.0 % at end-2025.

During the half, MGM China issued US$750 million of 6.25 % senior notes due 2033 and fully redeemed its US$750 million 5.875 % notes due 2026. Net proceeds were applied mainly to reduce revolving credit borrowings.

Capital expenditure reached HK$0.61 billion, focused on property enhancements and non-gaming amenities. The company has committed MOP19.7 billion (HK$19.1 billion) of investment over its 10-year gaming concession, with 91 % earmarked for non-gaming and international tourism initiatives.

On 30 June 2026, MGM China acquired MGM Asia Pacific Limited and subsidiaries for US$20 million (HK$156.7 million), adding a hospitality management platform in mainland China and marking the group’s first non-Macau operating assets.

Management cited a 9 % year-on-year rise in Macau visitor arrivals and a 6.8 % increase in market-wide gross gaming revenue as supportive of long-term growth, while highlighting continued execution on diversification, international customer acquisition and non-gaming expansion.

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