MGM China Sets Record in Q4 EBITDA Despite Cost Concerns

MGM China Holdings Ltd has recently declared an impressive performance in its fourth-quarter results, marking a standout achievement in the Macau casino sector. According to JP Morgan, the company's results showed a "solid beat," making it the top performer in the region when analyzing earnings before interest, taxation, depreciation, and amortization (EBITDA) on both a yearly and sequential basis.

As stated in a Friday note from banking giant JP Morgan, MGM China has effectively outperformed its competitors in Macau, achieving notable gains. Furthermore, MGM Resorts International, the parent company, disclosed some key highlights of MGM China's fourth-quarter achievements on Wednesday.

The company reported a significant 21.4 percent uptick in net revenue year-on-year, reaching just under USD 1.24 billion from its properties, MGM Macau and MGM Cotai. These figures were based on the Macau unit's adjusted earnings before interest, taxation, depreciation, amortization, and rent (EBITDAR), which rose sharply by 30.5 percent from the previous year to approximately USD 332.3 million. On a full-year basis, the adjusted EBITDAR reached USD 1.20 billion, marking a noteworthy 10.7 percent increase from the prior year.

Market Share Growth Amid Operational Efficiency

In a separate analysis from brokerage Jefferies, analysts Anne Ling and Jingjue Pei noted that MGM China not only achieved record fourth-quarter and full-year 2025 adjusted EBITDA but also managed to maintain its market share with marked gains. The firm's strong footings were further discussed in a Friday memo by JP Morgan analysts DS Kim, Selina Li, and Lindsey Qian, who highlighted the positive outlook from MGM China's management during the parent company's earnings call.

The management expressed optimism about the upcoming Lunar New Year celebration, starting on February 15, which traditionally serves as a key business period for Macau’s casino operators. The anticipation for this festive season is high, as it often draws significant crowds from mainland China, adding to the economic activity in the region.

However, despite the strong performance and positive projections, JP Morgan analysts also pointed out potential negatives or "question marks" for the quarter ending December 31. Notably, MGM China's corporate expenses have swelled to USD 29 million in the fourth quarter, a substantial rise from USD 9 million the previous year, exclusive of licensing fees tied to branding that the Macau unit owes to its U.S.-based parent.

Challenges and Future Outlook for MGM China

JP Morgan analysts attributed the increase in corporate expenses partially to non-recurring items, including catch-up accounting for concession-related payments to Ms. Pansy Ho and sponsorship of the National Games. Pansy Ho Chiu King, as chairperson of MGM China and managing director of MGM Grand Paradise Ltd, plays a crucial role in these financial maneuvers.

The reference to the National Games pertains to the 15th National Games of the People's Republic of China, which took place in November, with casino concessionaires in Macau pledging not only funds but also facilities for hosting some events. The brokerage Jefferies lauded MGM China's market share achievements in their Friday note, recording a 16.5 percent market share in the fourth quarter, up from 15.8 percent in 2024.

This growth was driven by significant performances from both MGM Cotai and MGM Macau, which held shares of 10.1 percent and 6.0 percent, respectively. The fourth quarter saw MGM Macau generating nearly HKD 3.49 billion (approximately USD 445.3 million) in revenue, a 4.1 percent year-over-year increase.

Meanwhile, MGM Cotai recorded revenue stretching to nearly HKD 6.14 billion, a 34.1 percent rise from a year earlier. Despite these gains, the press release from MGM China on Friday emphasized its steadfast operational efficiency by maintaining an adjusted EBITDA margin of 28.8 percent for the full-year 2025, compared to 28.9 percent in 2024. The company continues its mass-focused business approach, ensuring sustained profitability and efficiency in its operations.

Source: MGM China had 'record' 4Q EBITDA but 'questions' regarding costs: analysis, GGRAsia, February 6, 2026.

Posted by Wizard
Feb 06 2026