MGM Resorts recently expressed optimism regarding its operations in Macau, highlighting a fast recovery from a dip observed during the World Cup in June. Analysts from Deutsche Bank noted that the premium segment of the market showed resilience during this period.
In the second quarter, MGM China reported an adjusted EBITDA of HK$2.33 billion (about US$298 million), marking a 7.4% decline compared to last year. Revenue also fell slightly by 0.5% to HK$8.63 billion (approximately US$1.1 billion). Notably, revenue from main-floor table games saw a 6.2% decrease to HK$29.89 billion (around US$3.83 billion).
MGM Resorts International, the parent company, recorded a Segment Adjusted EBITDAR of US$257 million, influenced by increased branding fees among its divisions.
After a slowdown during the World Cup, MGM noted growing visitor numbers and gaming activity throughout July, with both gross gaming revenue and property traffic exceeding first-quarter levels by the end of the month.
MGM management clarified that the impact of the World Cup was short-lived and that recovery towards previous benchmarks was evident. Analysts, including Pizzella, commented that the company’s focus on improving its properties instead of ramping up promotions is likely to support Macau stocks in the near future.
Kenneth Feng, executive director of MGM China, informed the media that signs of recovery became pronounced in mid-July, following the FIFA World Cup’s diversion of tourist attention, which had negatively impacted several sectors in Macau. Post-tournament business has already outpaced the first quarter.
MGM China’s market share grew to approximately 16.4% in the second quarter, up about 100 basis points from the previous quarter. Deutsche Bank expressed a positive outlook on MGM’s commentary, particularly regarding growth in premium gaming, driven by upgrades in suites and gaming areas.
The company continues to enhance its luxury offerings, recently renovating suites at MGM Cotai and planning extensive upgrades for around 100 suites at MGM Macau. Management remains optimistic about maintaining healthy operating margins despite competitive pressures and expects that upcoming concerts and events will boost visitor numbers throughout the summer.
Additionally, shortly after these financial results were released, MGM announced Jeny Lau’s appointment as the new Chief Financial Officer, effective August 1st.
