MGM China Reports Increased Visitor Arrivals and Financial Growth for Q1 2025

MGM China Q1 2025 Financial Overview

MGM China Holdings Limited recently released its financial results for the first quarter of 2025, showcasing remarkable growth across various sectors. This report highlights key performance indicators that reflect the company's strong position in the rapidly recovering Macau market.

Visitor Arrivals Boost

In the first quarter of 2025, the average daily number of visitors to Macau surged by 12% compared to the previous quarter, bringing the total to 109,585, which is approximately 95% of the same period in 2019. This resurgence in tourism is critical not only for MGM China but also for the economy of Macau, which has heavily relied on tourism and gaming revenue.

Financial Performance Metrics

The gross gaming revenue (GGR) in Macau also demonstrated signs of robust growth. The daily GGR rose by 3% quarter-over-quarter, reaching MOP 641 million, representing 76% of the same period in 2019. The mass gaming revenue, which includes slot machine earnings, has remarkably recovered to about 110% of pre-COVID levels. However, VIP gaming revenue remained lower, estimated at 26% compared to the equivalent period pre-pandemic.

MGM China's financial metrics showed a net revenue of HK$8.0 billion, which is a 1% increase from the previous quarter and signifies a recovery to 139% of its revenue in Q1 2019. The adjusted EBITDA also increased by 11% from the previous quarter, totaling HK$2.4 billion, which translates to 146% of the adjusted EBITDA from the same period in 2019, with a margin improvement to 29.6% from 26.8%.

Overall, the company's GGR market share grew to 15.7%, up from 15.5% in the previous quarter. Both mass (including slots) and VIP market shares improved to 15.8% and 15.2%, respectively.

Occupancy Rates and Financial Health

MGM China maintained high occupancy at its resorts, averaging 93.3% during the reporting period. As of March 31, 2025, the company's total liquidity stood at approximately HK$17.8 billion, primarily consisting of cash and undrawn credit facilities, reflecting a sound financial position.

During this quarter, MGM also updated its dividend policy. The company announced plans to distribute 50% of anticipated annual consolidated profits through semi-annual dividends, an increase from the previous 35%. The possibility of special distributions was also mentioned, which could further benefit shareholders.

Industry Recognition

MGM China’s dedication to excellence in hospitality was recognized with seven Forbes Travel Guide's Five-Star Awards. MGM MACAU celebrated its tenth consecutive Five-Star rating, while Tria spas at both MGM MACAU and MGM COTAI achieved honors for six consecutive years. Additionally, several facilities, including the Emerald Tower and the Skylofts, received multiple Five-Star distinctions, consolidating MGM China's status as a leader in Macau's hospitality sector.

Kenneth Feng, President and Executive Director of MGM China, praised the company's performance as a sign of truly understanding customer needs, fueled by continuous innovation in service excellence.

Cultural Contributions

In a significant move for cultural tourism, MGM China's POLY MGM MUSEUM welcomed its 500,000th visitor shortly after opening. With exhibits showcasing Chinese civilization, the museum emphasizes the importance of cultural heritage in Macau's tourism landscape.

Feng expressed enthusiasm regarding Macau's development into a more diversified tourist destination, underscoring MGM's commitment to providing unique experiences that align with the evolving tourist demands.

Conclusion

MGM China's impressive Q1 2025 results underscore the company's recovery trajectory in the post-COVID tourism landscape of Macau. The growth in key financial metrics, coupled with strategic expansions and honors received, positions MGM China well as a leading entity in the gaming and hospitality sector.