GM China posted unaudited earnings before interest, taxes, depreciation and amortisation (EBITDA) of us$ 683.2 million, up by 7.7 percent year-on-year.
Meanwhile, MGM China said the general building plan for its Cotai casino resort project has been approved. It will host an official ground-breaking ceremony next Wednesday (February 27). Chief executive Grant Bowie confirmed the date in a conference call last week week.The us$ 2.6 billion project will have 1,600 rooms, 2,500 slots and up to 500 gaming tables. It is expected to open in 2016.
MGM China also announced it expects to add a new junket operator to its MGM Macau casino hotel in the second quarter of 2013. Furthermore, the company announced a special dividend of us$ 0.13 per share, up from the us$ 0.10 dividend it distributed for the 2011 results.
In a conference call with analysts, MGM China co-chairman Jim Murren said he expects the company to pay additional dividends. “I expect MGM China will be able to continue to pay distributions to shareholders while investing in its second property in Cotai. In fact, we have a board meeting next week where we will discuss putting in place a formal dividend policy,” he said.
In a client note issued last week, gaming consultancy Union Gaming Research noted “an ever-increasing amount of heavy construction equipment (e.g. pile drivers) being marshalled on site”.