China – MGM finding its roar in Macau with seven per cent increaseBy Phil - 2 May 2017
MGM China saw its revenues increase by seven per cent for the three months ended March 31, 2017, with total revenue of HK$3.9bn.
Adjusted EBITDA was up by 23 per cent from a year ago to HK$1.2bn. Property EBITDA margin for the quarter grew 412 basis points year on year to 31.4 per cent. Mass business accounted for over 80 per cent of the profit for the group during the quarter.
The Macau gaming market has been growing since the second half of 2016. Quarterly gross gaming revenue (GGR) in Macau has accelerated year over year three quarters in a row. Macau GGR increased by 13 per cent in first quarter to HK$61.6bn from a year ago.
For the quarter, the Group recorded main floor table games win of HK$2.2bnan increase of 17 per cent from a year ago. This compares to an estimated growth of 12 per centyear over year for Macau mass table GGR. VIP table win at MGM China was down seven per cent year from a year ago.
Before Chinese New Year this year, MGM opened a new gaming area on the main floor as part of an overall remodeling project of MGM Macau. The new gaming area not only offers premium mass players additional gaming tables, but also provides better connectivity and visibility on the gaming floor. Together with the launch of two new restaurants in late January, MGM Macau recorded strong visitation of premium mass players during and after the Chinese New Year period.
MGM Macau occupancy rate was 94.3 per cent for the quarter. The operator said it would continue the refurbishment on the main floor including the addition of retail outlets to further enhance our customer offerings. It added that it is aggressively progressing on the construction at MGM Cotai with the exterior approaching completion and significant finish installation fit outs taking place on the interior. During the quarter MGM unveiled its golden lion at MGM Cotai, the first ever to be gilded in 24-carat gold and a shining beacon for all visitors and locals in Macau of what is to come.
Grant Bowie, Chief Executive Officer and Executive Director of MGM China said: “MGM Macau continues to deliver strong results and our brand is well recognized for best in class service and product. We are pleased to see signs of stabilization in the Macau market as we prepare to launch our second resort, MGM Cotai in the second half of this year. MGM Cotai represents our company’s expertise in entertainment and marries that with the cutting edge technology, which will deliver experiences never before seen.”