MGM Resorts has stabilised in the eyes of analyst Fitch Ratings who says that the opening of MGM Cotai in February in Macau has given it an improved geographic diversification.
The ratings agency has given a ‘stable’ outlook for MGM Resorts highlighting strong conditions in Macau.
It said: “MGM will gain market share following the opening of its first Cotai property, which Fitch forecasts will generate nearly US$350m in incremental EBITDA. Fitch’s positive view on Macau is supported by an expanding middle class in China and infrastructure development in and around Macau.”
“Fitch forecasts 14 per cent growth in Macau gross gaming revenues for 2018, which reflects the continued health of VIP and premium mass segments, albeit with some deceleration from 2017. Since 2016, MGM has improved its overall geographic diversification and expanded its ‘M Life Rewards’ program. This has been achieved through acquisitions, like Atlantic City’s Borgata (2016) and New York’s Empire City Casino (est. 2019 closing), and new developments.
“Fitch has a positive view on MGM’s developments, which include MGM National Harbor (opened December 2016), MGM Cotai (opened February 2018) and MGM Springfield (est. September 2018). Fitch generally expects good return on investment for these developments.”