VIP gains lift MGM China operating profits 40 percent

 

Net revenues for MGM China Holdings Ltd. rose 17.7 percent to $835 million during the second quarter from a year earlier. Operating income rose 40 percent to $126 million. VIP table turnover rose 33.6 percent to HK$217.5 billion ($28.04 billion) as MGM added two junkets in April. Drop at main floor tables rose 11.4 percent to HK$5.04 billion and slot handle rose by the same rate to HK$10.6 billion. The company said overall casino revenue rose 12.3 percent HK$12.12 billion in the first half of 2013 from a year earlier while its market share on the Macau peninsula reached 18 percent, up from 16.9 percent. MGM China is to pay out $113 million in its first interim dividend.

Grant Bowie, chief executive, told analysts the company is spending $56 million on upgrades to the MGM Macau casino hotel this year; the renovation will require the temporary closure of the casino’s high-limit slot room and “Las Vegas” table games room during the third quarter.