MGM Resorts International saw a strong improvement in its financial results in the third quarter of the year, driven by the strength of its Chinese operations.
The company, which operates a series of casino resorts in the US and Macau, generated pre-tax earnings of US$546 million in the three months to 30 September 2013, up 24% year-on-year. Broken down by unit, MGM’s US resorts saw earnings rise 12% to US$280m, while the CityCenter complex in Las Vegas achieved a 6% rise, to US$62m. MGM China’s earnings however, jumped 25% to US$191m.
“I am pleased to report another solid quarter with double digit EBITDA (earnings before interest, tax, depreciation and amortization) growth and increased margins, led by strength at MGM China and our Las Vegas Strip properties,” said Jim Murren, MGM’s chairman & CEO.
“These results are reflective of… our focus on international marketing strategies combined with our best-in-class collection of resorts and amenities.”
MGM China pulled in revenues of US$808m during the quarter, a 22% up year-on-year. The company said this increase was “due primarily to increases in VIP revenues and main floor table games revenues”, which rose 28% and 31% respectively.
MGM currently operates one resort in Macau, but is in the process of developing a second, MGM Cotai, which will offer approximately 1,600 hotel rooms, a casino and a range of other business and leisure facilities.
For the first nine months of the year, MGM has now returned to a net profit, following a difficult 2012. The company generated US$15.6m in the first nine months of the year, compared to a net loss of US$428.4m in the same period last year.