Haitong International: MGM China's Q3 Results Slightly Beat Expectations

Deep News10-31 21:40

Haitong International released a research report stating that MGM China (02282) third-quarter results slightly beat expectations.

The company's third-quarter total revenue was HK$8.926 billion, up 4.9% year-on-year and up 3.5% quarter-on-quarter; adjusted EBITDA was HK$2.395 billion, up 0.9% year-on-year and up 2.9% quarter-on-quarter, corresponding to an adjusted EBITDA margin of 26.8%, down 1.06 percentage points year-on-year, slightly better than market consensus, mainly benefiting from a higher VIP baccarat win rate.

The investment bank noted that the company's third-quarter market share rose to 17.1%, with MGM Macau and MGM Cotai accounting for 6.6% and 10.5% respectively. The company's quarterly gross gaming revenue increased about 5% year-on-year, while Macau's overall market gross gaming revenue declined about 4% year-on-year over the same period. In September alone, market share reached 19.2%, and during the National Day Golden Week, visitation to the two properties increased 10% year-on-year.

The company's net debt fell to US$1.7 billion, improving 6% quarter-on-quarter, corresponding to a net leverage ratio of 1.5 times trailing twelve-month EBITDA. Management stated that the premium mass customer segment remains an important source of business growth and maintained its operating expectation of margins in the mid-to-high range of the 20% level.

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