Supplier News
China – MGM outpacing mass market in Macau
By Phil - 8 November 2016
MGM China reported a revenue increase of 11 per cent for the second quarter, taking revenue to HK$3.9bn, and with mass gaming accounting for nearly 80 per cent of the group’s profit.
The Group’s EBITDA margin grew to 33 per cent for the Period as a result of business mix and cost management, a 350bps improvement from in the second quarter.
For the period, main floor table games win increased by 13 per cent sequentially, compared to Macau mass market growth of approximately eight per cent. Hotel rooms at MGM Macau achieved an occupancy rate of 95.7 per cent during the period.
VIP table games win increased by three per cent sequentially. VIP table games turnover was increased by five per cent in line of the market. VIP table games win percentage was three per cent compared to 3.1 per cent in the second quarter.
Grant Bowie, Chief Executive Officer and Executive Director of MGM China said: “Operating efficiency is a core strategy as we continue to demonstrate over the years. We focus on customer acquisition both on mass gaming and non-gaming leisure business, continue to drive operational excellence and to develop our shared capabilities. The Group continues to see stability in the main-floor business. We are undergoing a remodelling of main floor at MGM Macauto pursue diversification including creating additional retail space and upgrading our food and beverage experiences.”
“We continue to move full steam ahead with the construction of MGM Cotai,” he added. “The MGM brand resonates with visitors worldwide, and we are highly focused on growing our customer database and infrastructure to ensure success when we open our second resort in this dynamic marketplace in the second quarter of 2017. The budget remains approximately HK$24bn. MGM Cotai is a first of its kind integrated resort with technology and entertainment offerings. We believe it will be well received by the market and we are confident to capture the growth opportunities of Macau.”
