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MGM China announces strong revenue growth

Written by Ben Blaschke

MGM China Holdings Ltd saw its quarterly revenue and adjusted EBITDA rise significantly in the three months to September 30, it has revealed.

In an announcement by the company and posted on the Hong Kong Stock Exchange, it saw total revenue increase by 11 percent sequentially to HK$3.9 billion, with adjusted EBITDA up 24% to HK$1.3 billion. For the Period, Macau’s gross gaming revenue (GGR) grew by approximately 7 percent sequentially.

MGM China’s solid results include table games win increasing by 13 percent on the main gaming floor and an occupancy rate of 95.7 percent in its hotel rooms at MGM Macau. VIP table games win increased by 3 percent sequentially.

CEO and Executive Director Grant Bowie said the numbers were a reflection of MGM China’s dedication to improved efficiency, with the company continuing, “to move full steam ahead with the construction of MGM Cotai.”

“Operating efficiency is a core strategy as we continue to demonstrate over the years,” Mr Bowie said. “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.

“We are excited by the opening of MGM Cotai, 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.”

Union Gaming analyst Grant Govertsen said the results were evidence of the growing importance of the mass market in Macau.

“That MGM China reported significant mass growth is 1) a testament to management in the face of significant new supply and 2) evidence that boutique-style properties can also benefit from the inflecting mass story,” he said.