MGM China Q1 2025 results show continued growth

MGM China has unveiled its financial results for Q1 2025, showcasing significant sequential growth and an expanding market share as Macau’s tourism and gaming industries recover robustly.

For the quarter ending March 31, 2025, MGM China reported net revenues of HK$8.0 billion (US$1.3 billion), reflecting a 1% increase from the previous quarter and reaching an impressive 139% of Q1 2019 figures. This rebound underscores a positive trend in Macau’s recovery trajectory.

Adjusted EBITDA demonstrated even more notable growth, soaring by 11% quarter-over-quarter to HK$2.4 billion, equating to 146% of pre-pandemic levels. The enhancement in the company’s EBITDA margin—from 26.8% to a robust 29.6%—illustrates improved operational efficiency and profitability.

The broader recovery of Macau bolstered this performance, with average daily visitor arrivals climbing 12% from the preceding quarter to 109,585, now hovering at 95% of Q1 2019 levels. MGM China significantly outperformed the market with property visitation figures reaching an exceptional 177% of its pre-pandemic benchmarks, highlighting its strong brand positioning and customer appeal.

The gaming sector exhibited remarkable performance as well, with daily gross gaming revenue (GGR) attaining 128% of Q1 2019 levels. This was propelled by mass market GGR—including slots—skyrocketing to 183%, while VIP GGR noted a more modest increase at 43%. Concurrently, MGM China boosted its GGR market share slightly to 15.7%, up from 15.5% in the last quarter, indicating solid competitive positioning.

Highlighting its confidence in continued growth, MGM China announced a revision to its dividend policy during the quarter, increasing the potential payout from 35% to 50% of expected consolidated annual profits. This adjustment includes the implementation of semi-annual payments, with provisions for special dividends, which could further attract investor interest.

In contrast, parent company MGM Resorts International experienced a softer quarter, reporting a 2% decline in revenue to US$4.3 billion and a striking 37% drop in net income to US$149 million for the same period. This disparity highlights the resilience and robust performance of MGM China amidst broader challenges faced by the parent group.

MGM China’s impressive results stand out in the context of Macau’s overall gaming landscape, where April’s GGR reached MOP 18.59 billion (US$2.32 billion), marking a 1.7% year-over-year increase and representing the region’s third consecutive month of growth. This consistent upward trend reflects renewed confidence in the recovery of Macau’s gaming and tourism sectors, positioning MGM China as a key player in this dynamic market.