Two Macau casino operators each announced their annual dividends on Thursday for the first time since the 2019 trading year before the COVID-19 pandemic, according to what one broker described as a “surprise.”
The dividend action is “a year earlier than the investment industry expected,” JPMorgan Securities (Asia-Pacific) said on Friday.
“This means that three out of six [Macao] operators are currently paying dividends, including Galaxy [Entertainment Group], and we expect Sands [China] to follow next year… On the other hand, Melco [Resorts & Entertainment] and SJM [Holdings] may prioritize delivering for the time being,” wrote analysts DS Kim, Mufan Shi, and Selina Li.
MGM China Holdings Ltd. has flagged its final dividend for 2023 at HK$0.243 (US$0.0307) per common share to be paid on June 20, subject to the approval of its annual meeting.
The company, which operates MGM Macau and MGM Kotai properties, also declared a special dividend of HK$0.104 per share to be paid on April 12.
MGM China said both dividends together represented 50% of the company’s owners’ 2023 profit.
Wynn Macau and Wynn Kotai Casino Resort operator Wynn Macau Inc. announced a final dividend for 2023 of HK$0.075 per share due on June 19.
JP Morgan said in response to Wynn Macao Ltd’s announcement, “It means a 34% dividend on FY23 earnings per share.”
MGM China said in a filing with the Hong Kong Stock Exchange on Thursday that its final dividend for 2023 amounted to about HK$923.4 million, “equivalent to about 35% of the group’s profits attributable to the owner of the company” for the year ended Dec. 31.
The company added that its special dividend totaled HK$395.2 million, or about 15% of the group’s 2023 profit.
GGRAsia’s review of MGM China and Wynn Macau Ltd’s annual reports for 2020, 2021 and 2022 showed it did not pay dividends for those trading years, consistent with COVID-related travel restrictions affecting Macau and its main tourism supply markets, mainland China and Hong Kong. Restrictions were largely lifted in January last year.
By early February this year, Craig Billings, chief executive of Win Macao Inc and its parent company Win Resorts Inc, said Win Macao Inc. would need to consider its “leverage profile in Macao” before committing to when to pay dividends.
For the full year of 2023, Wynn Macao Ltd had an operating income of $3.1 billion, compared to $721.5 million a year earlier.
MGM China’s total revenue for 2023 was HK$24.68 billion, up 368.5% from 2022, compared to the pre-pandemic trading year of HK$22.77 billion, at 108.4%.
BY: 바카라사이트