Home Economy MGM China adds 535.5 million loss

MGM China adds 535.5 million loss

Macau gaming operator MGM China announced a loss of HK$535.5 million in the third quarter of the year. The revelation was made in a statement sent to the Hong Kong Stock Exchange.

In the same period in 2021, MGM China had posted positive adjusted earnings before taxes, interest, depreciation and amortization [EBITDA] of HK$100.5 million.

This year’s third quarter EBITDA is even worse than the previous quarter, which had been HK$382.4 million.

According to analysts DS Kim and Livy Lyu, from JP Morgan Securities (Asia Pacific), the negative results are better than expected, but they are far from reassuring investors.

“Although EBITDA is moderately better than feared, the implications for MGM’s [China] third quarter equities and earnings are very limited given that the dismal business environment is already well documented, and that MGM’s management company cannot advance data from negotiations [for a new gaming license] with the Government”, reads the report by JP Morgan Securities (Asia Pacific), quoted by the GGRA Asia portal.

The results presented refer to the months of July, August and September, that is, they do not take into account the months of October and November, when the MGM Cotai casino was closed for a few days due to an outbreak.

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