MGM CHINA(02282)2024-08-08 11:33Financial Performance - MGM China Holdings Limited reported operating revenue of HKD 16,217,982 for the six months ended June 30, 2024, an increase of 52.0% from HKD 10,649,439 in the same period of 2023[2]. - Adjusted EBITDA for the same period was HKD 4,948,002, up 56.5% from HKD 3,160,081 year-over-year[2]. - Net profit attributable to shareholders rose significantly from HKD 820,914 to HKD 2,685,454, marking a growth of 227.0%[3]. - Basic earnings per share increased to 70.6 HK cents, compared to 21.6 HK cents in the previous year, reflecting a growth of 227.6%[4]. - Operating profit for the six months ended June 30, 2024, was HKD 3.522 billion, compared to HKD 1.867 billion for the same period in 2023, indicating an increase of 88.5%[12]. - The group reported a profit attributable to owners of HKD 2.685 billion for the six months ended June 30, 2024, compared to HKD 820.914 million for the same period in 2023, representing a 227.5% increase[12]. - The company reported a profit attributable to shareholders of HKD 2,685,454,000 for the six months ended June 30, 2024, compared to HKD 820,914,000 for the same period in 2023, representing a significant increase[18]. - The company’s profit attributable to owners increased from HKD 820.9 million to HKD 2.685 billion, reflecting improved financial performance[83]. Assets and Liabilities - The total assets of the company as of June 30, 2024, were HKD 30,034,712, compared to HKD 29,181,304 at the end of 2023, indicating a growth of 2.9%[5]. - The total liabilities decreased slightly from HKD 30,508,524 at the end of 2023 to HKD 30,086,956 as of June 30, 2024[7]. - As of June 30, 2024, the group reported a net current liability of HKD 21.361 billion, a significant decrease from HKD 51.874 billion as of December 31, 2023[9]. - The company’s non-current assets totaled HKD 23,824,079, down from HKD 24,038,700 at the end of 2023, a decrease of 0.9%[5]. - The company’s total borrowings as of June 30, 2024, amounted to HKD 23,769,705,000, a slight decrease from HKD 24,098,731,000 as of December 31, 2023[23]. Cash Flow and Financing - Cash and cash equivalents increased to HKD 5,214,454 from HKD 4,231,986, representing a growth of 23.2%[5]. - Total cash and cash equivalents amounted to HKD 52.145 billion as of June 30, 2024, up from HKD 42.320 billion as of December 31, 2023[9]. - The group incurred total financing costs of HKD 838.550 million for the six months ended June 30, 2024, down from HKD 978.768 million in the same period of 2023[14]. - Net cash generated from operating activities was HKD 4.257 billion, up from HKD 3.692 billion, mainly due to increased operating profit[88]. - Major cash outflows for the six months ended June 30, 2024, included HKD 5.8731 billion for the repayment of notes, HKD 808 million for interest payments, and HKD 1.3196 billion for dividends[91]. Dividends - The company did not declare an interim dividend for the six months ended June 30, 2024[3]. - The board declared a special dividend of HKD 0.104 per share, totaling HKD 395,300,000, paid on April 23, 2024[17]. - The final dividend for the year ended December 31, 2023, was approved at HKD 0.243 per share, amounting to HKD 924,300,000, paid on June 20, 2024[17]. Market and Operational Insights - MGM China Holdings Limited continues to benefit from the easing of COVID-19 travel restrictions in Macau, contributing to improved operational performance[3]. - The total number of inbound visitors to Macau increased by 43.6% for the six months ended June 30, 2024, compared to the same period in 2023, while the number of visitors from mainland China rose by 52.9%[49]. - Macau's gross gaming revenue for the six months ended June 30, 2024, increased by 41.9% to HKD 110.4 billion compared to the same period in 2023[49]. - The overall gaming market share of MGM Grand increased from 9.5% in 2019 to 15.2% in 2023 and further to 16.5% for the six months ended June 30, 2024[51]. - The mid-market gaming business accounted for 87% of MGM Grand's gross gaming revenue for the six months ended June 30, 2024[52]. Investments and Future Plans - The company has committed to investments in gaming and non-gaming projects totaling MOP 16.7 billion (approximately HKD 16.2 billion), with MOP 15 billion (approximately HKD 14.6 billion) allocated to non-gaming projects[20]. - The company plans to launch two new gaming products in Q4 2024, aiming to capture a larger share of the market[127]. - The company is exploring potential acquisitions to enhance its portfolio and market reach, with a budget of up to $500 million allocated for this purpose[129]. - The company aims to enhance customer experience by improving product and service quality and increasing operational efficiency across all business segments[46]. Employee and Operational Metrics - The company employed 12,746 full-time and part-time employees as of June 30, 2024, an increase from 11,786 employees as of December 31, 2023[112]. - Employee costs increased by 28.0% to HKD 2.795 billion, primarily due to hiring additional staff to support business growth[76]. - The occupancy rate for hotel rooms was 94.1%, slightly up from 93.8% in 2023[65]. Corporate Governance and Compliance - The company has complied with the corporate governance code provisions during the reporting period from January 1, 2024, to June 30, 2024[116]. - The interim financial statements for the reporting period have been reviewed by the audit committee and the company's auditors[118]. - The company has adopted a more stringent code of conduct for securities trading by its directors and senior management, which has been adhered to during the reporting period[117].