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MGM China’s USD1.1 billion quarter masks margin squeeze from higher branding fee
['Nadia Shaw', 'More Author']
MACAU DAILY TIMES 澳門每日時報
This decline was driven largely by a $21 million increase in intercompany branding license fee expense after MGM Resorts doubled the fee for use of the MGM name last year.
MGM China operates two integrated resorts in Macau: MGM Cotai and MGM Macau on the peninsula.
At MGM Cotai, revenue was broadly flat at HKD5.28 billion, while adjusted EBITDA slipped 2.3% to HKD1.50 billion.
MGM Macau recorded revenue of HKD3.35 billion, down 1.0% from a year earlier, while adjusted EBITDA declined 15.4% to HKD826 million.
MGM recently debuted the ultra-luxury Alpha Villas at MGM Macau, expanded premium mass gaming space by 50,000 square feet and unveiled renovated suites at MGM Cotai in April.