The Chinese arm of US gaming giant MGM and Hong Kong casino mogul Lawrence Ho’s Melco have emerged stronger from the zero-Covid policy era than their rivals, according to earnings reports from the Big Six operators in Macau.
MGM China and Melco Resorts revealed the best recovery, even though both reported revenues last year were down more than 75 per cent on 2019. Combined revenues for the six of about $6.7bn in 2022 were 80 per cent lower than in 2019, which preceded three years of tough restrictions on business and travel to the only part of China where casino gambling is allowed.
The pair’s better performance has been reflected in their share prices. Hong Kong-listed MGM China’s stock has jumped 114 per cent over the past six months, while US-listed Melco Resorts climbed by 144 per cent, and its Hong Kong-listed parent company, Melco International, rose 81 per cent. The other four — Galaxy Entertainment, Sands China, Wynn Macau and SJM Holdings — saw share price increases of between 23 and 55 per cent.