MGM China EBITDA softer than expectations

Macau casino operator MGM China posted a 21 percent year-on-year decrease in adjusted EBITDA in 17Q3, slightly below market expectations.

Adjusted EBITDA was $118 million. Net revenue decreased 5 percent to $471 million.

Main floor table games revenue decreased 11 percent year-on-year, while table games revenue decreased 3 percent year-on-year.  

The group however saw sequential improvement across all gaming segments, with approximately 80 percent of profit contributed by the main floor.

Main floor table games win increased by 2 percent and drop increased by 7 percent sequentially. Slot win grew by 14 percent and VIP table games win increased by 9 percent sequentially.

The company also saw market share improve each month within the period, a reflection of stability and resilience in Peninsula market which attracts quality players.

“We continue to invest and remodel main floor at MGM MACAU with additional retail space to create further diversified experiences for our visitors,” it wrote.

Regarding its newest development, MGM Cotai, the operator says it is on track to open on January 29, 2018.

Grant Bowie, chief executive officer and executive director of MGM China said: "We are confident in Macau's long-term prospects. We continue contributing to its evolution into a World Center of Tourism and Leisure with the opening of our second integrated resort, MGM COTAI in January next year. We look forwards to expand our presence and capture the growth opportunities in this dynamic market."

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