MGM China Shareholders Back Final 2025 Dividend
A filing by MGM China Holdings Ltd stated that shareholders have voted for a final dividend of HKD0.353, equivalent to US$0.04, per share for the financial year ending on December 31, 2025. This dividend was confirmed during the company’s annual general meeting held last week and will be paid on June 3.
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The final dividend takes the total 2025 payout to just over HKD1.34 billion. MGM China said that the amount represents about 26.4% of its HKD5.07 billion profit attributable to owners last year. The company operates MGM Macau and MGM Cotai in the Macau market.
Dividend Approved
The latest approval follows the interim dividend declared by the board in August last year, when MGM China set a payment of HKD0.313 per share for shareholders. Together, the 2 payouts form the company’s distribution for 2025.
The company’s filing confirmed the timing of the final payment, which will be made on June 3. The dividend decision adds another shareholder return to a year in which the operator reported stronger revenue performance and continued activity across its Macau portfolio.
MGM China’s annual dividend level also reflects the company’s broader earnings base in 2025. The group’s profit attributable to owners gave room for the final payout, though the total distribution remains well below half of that amount when measured against earnings.
Full-Year Revenue Base
In February, MGM China reported fourth-quarter net revenue of just under US$1.24 billion, up 21.4% year-on-year. That brought full-year 2025 net revenue to US$4.46 billion, an increase of 10.9% from the previous year.
These figures will provide an insight into the context behind the decision regarding the dividends, as the company had a stronger revenue position at the end of the year. The business operations in Macau, including MGM Macau and MGM Cotai, continued playing a pivotal role in its performance for the year.
With the increase in revenues, the company was able to maintain the dividend payment to the shareholders. Despite the filing being focused on the approved payment, the annual operating figures indicated that the company had developed a strong earnings and revenue base for 2025.
Analyst Views
Brokerage Jefferies had said in a December note that MGM China might face a lower dividend per share for 2026 and 2027 because of a doubling of the royalty fee percentage payable to its US-based parent MGM Resorts International. The note also said the company could review its payout ratio.
JP Morgan took a different tone in a recent note, describing the newly announced dividend as mediocre. The banks stated that the final dividend, along with the interim dividend, comprised a 50% payout.
From these analyses, one can conclude that the market has been paying attention to the balance between shareholder payments and other financial obligations of the firm. With the dividend approval, the situation with the payout in 2025 became clear.
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Source: GGR Asia
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