MGM China posts strong gaming growth in 19Q1

Tuesday 30th of April 2019

Macau casino operator MGM China saw its gross gaming revenue grow by 18 percent year-on-year for the three months ended March 31, 2019, with growth seen across all gaming segments.

For the quarter, main floor table games win reached HK$3.5 billion, increasing 35 percent, due to a full quarter of operations at MGM Cotai, along with the addition of new tables and higher win percentage.

VIP table win also grew 3 percent, outperforming the market significantly (which declined in the quarter), due mainly to the opening of VIP junket rooms in the second half of 2018.

Slot win also increased in the quarter, up 12 percent to HK$537 million, also outperforming the market, as pointed out by analysts.

The strong gaming revenue growth saw MGM China’s total revenue reach HK$5.8 billion, increasing 23.5 percent. Adjusted EBITDA increased 27 percent year-on-year, beating analyst expectations, to HK$1.6 billion, increasing primarily as a result of the continued ramp-up of operations at MGM Cotai.

The first quarter of the year also saw MGM China being given an extension of its gaming sub-concession to June 2022, which is now aligned with the market.

The casino company also launched the much-anticipated villas at The Mansion at MGM Cotai, which is described as lavish residential-style villas for the most privileged guests, bringing exclusive luxury to the next level.

Grant Bowie, Chief Executive Officer and Executive Director of MGM China said: "The Mansion is a unique product to MGM as well as the market. We have been receiving very positive comments from our top customers and we continue to build the momentum across our properties.

"Along with the growth of our business, we are delighted to see our gaming sub-concession extended. We are grateful for the support of the Macau government and remain committed to the region's continued evolution into a global leisure and tourism destination."

During a results conference call, MGM China management said that they are seeing strong bookings for the Golden week (May 1^st holiday) and some uptick with direct VIP since the opening of the Mansion at MGM Cotai.

The company is expecting high single-digit growth in mass for Macau market overall in 2019, but will see challenges for junket-driven VIP.