Haitong International: MGM China (02282) third quarter results slightly beat expectations

The Zhitong Finance App learned that Haitong International released a research report saying that MGM China (02282)'s third-quarter results slightly beat expectations. The company's total revenue for the third quarter was HK$8.926 billion, up 4.9% year on year and 3.5% quarter over quarter; adjusted EBITDA was HK$2,395 billion, up 0.9% year on year and 2.9% quarterly, corresponding to adjusted EBITDA profit margin of 26.8%, down 1.06 percentage points year on year, slightly better than the consistent market expectations, mainly benefiting from the high VIP room win rate.

The bank indicated that the company's market share rose to 17.1% in the third quarter, with MGM Macau and MGM Cotai accounting for 6.6% and 10.5% respectively. The company's quarterly gross gaming revenue increased by about 5% year on year, and gross gaming revenue in the Macau market fell by about 4% year on year during the same period. The monthly market share reached 19.2% in September, and the number of visitors to the two properties during National Day Golden Week increased 10% year-on-year.

The company's net debt fell to US$1.7 billion, an improvement of 6% quarterly, corresponding to 1.5 times the net EBITDA leverage ratio over the past 12 months. Management said that the high-end midfielder customer base is still an important source of business growth and maintains operating expectations that profit margins are at a high level in the 20% range.