MGM China is seeing its numbers go back to the time before the Covid-19 pandemic. Quarterly net revenue and EBITDA for the second quarter of the current, that is, 2023, signify that the venture could be very well on track to regain the position that it once held before 2019.
This is evident from the numbers that MGM China has made public recently. They highlight a jump in quarterly net revenue from $706.1 million to $741.0 million. The first one is for the second quarter of 2019, and the following number is from the recently concluded quarter on June 30, 2023.
If judged based on a consecutive quarter, the net revenue has seen a rise there as well. MGM China has said that the rise is 20%. The same segment, when compared to the Q2-2022 number, has seen a tremendous rise of 418.1%. The reason why the second quarter of 2022 was disrupted is because the travel restrictions were still in place amid the global health crisis. While an online casino found a way to penetrate the market through everyone’s mobile phones and desktop computers, land-based betting operators were struggling to make ends meet during the pandemic and then during the extended restrictions.
EBITDA, which is earnings before interest, taxation, depreciation, & amortization, has increased too.
MGM China has reported the number in that category stands at $223.9 billion. It was HKD 1.46 billion during Q2-2019. The former number roughly translates to HKD 1.75 billion. Simply put, there is an increase in EBITDA, with the number surpassing the level that was set before the pandemic. The quarter-to-quarter comparison also brings a rise in the picture. This is 24.1% against the first quarter of the current year.
MGM China has said in the filing with the Hong Kong Stock Exchange that it was largely impacted by the removal of travel restrictions. With those barriers not in the picture, the operator was able to generate solid numbers in the recently concluded quarter of 2023.
According to the casino news, Analysts Mufan Shi and DS Kim have also credited the success to the management of the venture, stating that while the market-wide recovery played an important role, it was also their confidence that helped them achieve the numbers.
The number could be more impressive. JPMorgan has said that the management is confident of its performance in July which is even better than before. JPMorgan has further added that all key indicators are pointing in the right direction of growth.
Its market share has gone up from 9.5% in 2019 to 14.9%. This is a downfall, though, when compared to the first quarter of 2023. The number at that point was 15.4%. That has been described as a historic high by the management, hoping that it will surpass that figure in the next quarter.
