MGM CHINA(02282)2024-03-21 11:34Financial Performance - Total revenue for MGM China Holdings Limited reached HKD 24,684,210 thousand in 2023, a significant increase from HKD 5,268,569 thousand in 2022, representing a growth of approximately 368%[2] - The company reported an adjusted EBITDA of HKD 7,235,246 thousand for 2023, compared to a loss of HKD 1,274,355 thousand in 2022, indicating a substantial recovery in operational performance[2] - Net profit attributable to shareholders was HKD 2,638,304 thousand in 2023, a turnaround from a loss of HKD 5,231,911 thousand in the previous year, marking a significant improvement[3] - Operating profit for the year was HKD 4,547,486 thousand, a recovery from an operating loss of HKD 3,609,542 thousand in 2022[5] - The company reported a significant increase in gaming revenue, reaching HKD 21,821,840 thousand in 2023, compared to HKD 4,438,995 thousand in 2022, reflecting a strong recovery in the gaming sector[2] - The group’s financial performance showed significant improvement following the relaxation of travel restrictions in Macau starting December 2022, leading to a substantial increase in visitor numbers[11] - Adjusted EBITDA for 2023 reached HKD 7,235,246, a significant recovery from a loss of HKD 1,274,355 in 2022[18] - Total operating revenue for 2023 was HKD 24,684,210, up from HKD 5,268,569 in 2022, representing a growth of approximately 368%[19] - The company reported a net profit attributable to shareholders of HKD 2,638,304 in 2023, compared to a loss of HKD 5,231,911 in 2022[25] - Basic earnings per share for 2023 were HKD 0.694, recovering from a loss of HKD 1.377 in 2022[25] Dividends and Shareholder Returns - The board declared a special dividend of HKD 0.104 per share, totaling approximately HKD 395,200 thousand, which represents about 15% of the net profit attributable to shareholders for the year[4] - The company plans to pay a final dividend of HKD 0.243 per share, amounting to approximately HKD 923,400 thousand, which constitutes about 35% of the net profit attributable to shareholders[4] Assets and Liabilities - Total assets decreased to HKD 29,181,304 thousand in 2023 from HKD 31,209,496 thousand in 2022, reflecting a reduction in cash and cash equivalents[6] - The company's total liabilities decreased to HKD 30,508,524 thousand in 2023 from HKD 35,205,917 thousand in 2022, indicating improved financial stability[9] - Cash and cash equivalents were HKD 4,231,986 thousand in 2023, down from HKD 6,706,591 thousand in 2022, highlighting a need for cash management strategies[6] - The group had a net current liability of HKD 5.1874 billion as of December 31, 2023, compared to a net current asset of HKD 4.9303 billion as of December 31, 2022, largely due to an unsecured senior note maturing on May 15, 2024[13] Gaming Operations - The group’s gaming license for MGM Cotai was granted for a period of 10 years from January 1, 2023, allowing the operation of a total of 750 gaming tables and 1,700 electronic gaming machines[12] - The mass market gaming segment accounted for 85% of the company's gaming revenue for the year ending December 31, 2023[68] - MGM's gaming operations are supported by a total of 950 slot machines and 351 gaming tables at the Macau MGM, which opened in December 2007[55] - As of December 31, 2023, the total floor area of the MGM Cotai is approximately 24,549 square meters, featuring 901 slot machines and 399 gaming tables[56] Visitor Trends and Market Conditions - The total number of inbound visitors to Macau increased by 394.9% compared to 2022, with total gaming revenue rising by 333.8% to HKD 177.7 billion for the year ending December 31, 2023[64] - The proportion of visitors from mainland China to Macau was approximately 67.5% in 2023, down from 70.9% in 2019, indicating a slight shift in visitor demographics[63] - The overall gaming market share increased from 9.5% in 2019 to 15.2% as of December 31, 2023, driven by additional gaming tables and a focus on the mid-to-high-end market[66] Operational Improvements - The company aims to enhance customer experience by improving product and service quality, increasing asset utilization, and maximizing operational efficiency across all business segments[61] - The company has enhanced its marketing efforts and brand recognition through various promotional activities and strategic alliances[71] - The company continues to focus on upgrading its facilities and enhancing customer experience in both gaming and non-gaming areas[71] Financial Obligations and Debt Management - The company believes it can meet its financial obligations due within the next twelve months based on its improved cash flow estimates and financial performance[13] - The company has extended the maturity date of its revolving credit facilities from May 15, 2024, to May 15, 2026[34] - The company has no secured debt or subordinated debt as of the announcement date[38] - The company’s total unsecured borrowings include HKD 21,374.339 million after deducting financing costs[34] Future Growth and Investments - The company has committed to invest MOP 19.7 billion (approximately HKD 19.1 billion) in gaming and non-gaming projects, with MOP 18 billion (approximately HKD 17.5 billion) allocated for non-gaming projects[31] - The company is exploring potential acquisitions to further strengthen its market position, with a budget of $200 million allocated for this purpose[149] - The company plans to expand its market presence in the U.S., targeting a 25% increase in revenue from this region over the next fiscal year[149] Corporate Governance and Compliance - The company has committed to maintaining high ethical standards and compliance with corporate governance codes as of December 31, 2023[135] - The company’s board of directors is composed of three independent non-executive directors and two non-executive directors, overseeing financial reporting and risk management[137]