MGM China announces interim loss of US$306 million as COVID restrictions continue to bite
MGM China reported a loss attributable to company owners of HK$2.41 billion (US$306 million) for the six months through June 30, 2022, as COVID-19 restrictions across China continue to bite.
A day after parent company MGM Resorts International reported record 2Q22 results due to the surge in its US business, its Macau-based subsidiary saw losses jump from HK$1.73 billion ( $221 million) at the same time last year. Casino revenue fell 33.4% to HK$2.75 billion, with an adjusted EBITDA loss of HK$336.7 million.
The company said it did not recommend paying an interim dividend for the first half of 2022.
“The COVID-19 pandemic continued to have significant impacts on our business, results of operations and financial condition during the reporting period,” MGM China said.
“[COVID-19] the restrictions have a significant impact on attendance at MGM MACAU and MGM COTAI and have caused a material adverse effect on the Group’s results for the six months ended June 30, 2022 and are likely to continue to impact the Group’s results due to the uncertainty of the duration of the pandemic. »
Referring to the recent closure of all casinos in Macau for 12 days before reopening on August 2, MGM noted that “as of the date of this announcement, most of our restaurants and bars and some of our retail outlets are closed and we have considerably reduced our operation. capacity with restrictions in place currently in response to the Macau government’s call to control the transmission of COVID-19.
The company also confirmed that it continues to implement safety measures on its gaming halls “such as limiting the number of seats available at each table game, slot machine spacing, temperature checks , mask protection, and health declarations submitted through the Macau Health Code System.”