MGM Macau is scheduled to open in the second quarter of 2017, with approximately 1,500 hotel rooms and suites, meeting space, high end spa, retail offerings and food and beverage outlets. The HK$24 billion project has a jewellry-box design and 85 percent of its gross floor area will be dedicated to non-gaming facilities.
MGM Cotai has been named by Emporis Skyscraper Awards as the “world's best new skyscraper” for 2018. It is the first building in Macau to have been given this honor.
MGM China said its net revenues grew by 26 percent during the second quarter of 2019, reaching $706 million, resulting from the continued ramp-up of MGM Cotai, and an increase in main floor table games hold percentage. Adjusted Property EBITDA reached $171 million, a 43 percent increase compared to the prior-year quarter. MGM said much […]
The earnings of Macau’s six operators may produce some negative surprises amidst higher staff costs, higher reinvestment rates and slowing revenue growth, Morgan Stanley forecasts.
More than 300 MGM China team members attended a seminar on the Development of Chinese Traditions and Culture” on Thursday, which was designed to study the roots and values of Chinese traditions and how that shapes modern-day thinking and business decisions.
Fitch Ratings has reaffirmed the credit rating of MGM Resorts and its MGM China unit, saying the group’s credit profile is improving.
MGM China, one of Macau’s six gaming concessionaires, reported a 26.4 percent year-on-year increase in revenue in the first quarter of 2018. Such revenue reached HK$4.7 billion (US$598.7 million), up from HK$3.7 billion in 17Q1. Total adjusted EBITDA stayed relatively flat in the quarter, at HK$1.3 billion, compared to HK$1.2 billion in the prior year […]
MGM China posted a 25 percent increase in Q1 earnings, boosted by an $85 million contribution from the newly opened MGM Cotai. Revenues totalled $596 million for the quarter. Main floor table games win was up 20 percent, while VIP win rose 26 percent. Operating income was $55 million compared to $75 million in the […]
MGM Cotai has been awarded the Three-Star certification under the China Green Building Design Label by the China Green Building and Energy Saving (Macau) Association. This makes MGM Cotai the largest property in Macau to have achieved the Three-Star certification, which is the highest ranking in the Label. The award ceremony took place at the […]
Over 600 guests attended a dinner and party celebration at MGM Cotai on Sunday, hosted by MGM’s co-chairperson and executive director Pansy Ho. Guests included A-listers, celebrities, top regional socialites and fashion icons at the MGM Theatre, which transformed into a banquet venue, a concert hall and a DJ nightclub. Participants of the evening celebrated […]
Sega Sammy Creation has announced their electronic gaming machine “SICBO BONUS JACKPOT MAXIMUM FORTUNE” has been installed at MGM Cotai. MGM Cotai, operated by MGM China Holdings, is an integrated resort which offers approximately 1,400 hotel rooms and suites, meeting space, high end spa, retail offerings and food and beverage outlets and more. The new […]
MGM China’s Q4 revenue gained 10 percent, pulled up by the mass market, which benefited from a gain in both volume and hold percentage. Net revenues were $549 million. Revenue from main floor table games was up 21 percent, helped by a 10 percent increase in volume and a gain in the hold to 21 […]
MGM Cotai opened its doors yesterday, with casino floor traffic above expectations following the grand opening ceremony. The opening night ceremony was an all business affair. Officiating guests included Macau chief executive Mr. Chui Sai on, along with key Macau government officials and executives from MGM Resorts. The low key event, was followed by a […]
MGM Resorts is opening its $3.4 billion casino resort today, just days ahead of the Lunar New Year period. A series of press events will be organized today, including a press conference to introduce the integrated resort, innovative dining concepts featuring four world renowned celebrity chefs, and a unique art collection with over 300 pieces […]
MGM Cotai will have its official grand opening on Tuesday, February 13, 2018, according to a media invitation sent on Tuesday. A series of press events will be organized on the day, including a press conference to introduce the integrated resort, innovative dining concepts featuring four world renowned celebrity chefs, and a unique art collection […]
The head of the Macao Government Tourism Office (MGTO), Maria Helena de Senna Fernandes said there is no guarantee that MGM Cotai will open by Chinese New Year, Macau News reports. The HK$27 billion ($3.4 billion) property had originally been scheduled to launch on Monday, January 22, but was delayed as it was still in […]
LED sign products are beginning to dominate the casino landscape, providing versatile digital media for clients, but also resulting in significant cost savings for operators. Casinos are finding that going green can be good for the bottom line. According to the U.S. Environmental Protection Agency, the Monte Carlo casino in Las Vegas was able to […]
MGM China stock dropped more than 7 percent in Hong Kong trading on Thursday after the company announced a further delay to the opening of its new IR on Cotai. The HK$27 billion ($3.4 billion) property had been scheduled to launch on Monday. The company said it was still in the process of obtaining relevant […]
MGM China Holding’s new Cotai resort, which opens on Jan. 29, has been allocated a total of 125 new tables by the Macau government. The property will get 100 new live tables at the open, with a further 25 to be added in January next year. It can install about 900 slot machines. The allocation […]
MGM Cotai has welcomed more than 5,000 team members in the run up to its opening on January 29. The activities not only provided the team members with comprehensive property profiles to ensure readiness of the resort, but also inspired them to commit themselves to excellence, said the company in a press release. As an […]
MGM China Holdings says the Jan. 29 opening of its MGM Cotai resort will kick off a series of celebrations designed to showcase the HK$27 billion property ($3.4 billion). The launch of the resort was delayed from Q4 of last year, in part because of damage from Typhoon Hato, which swept through the territory in […]
Macau casino operator MGM China says it is currently waiting for approval from the government for its license for MGM Cotai, but expects to open on schedule. “We’re still certainly working towards or 29th opening,” said CEO Grant Bowie, quoted by TDM News. “We’re working through now with the government with all the approvals. I […]
Several gaming industry executives and companies won accolades at the 2017 Business Awards of Macau, held on November 24 at the Grand Lisboa. Nearly 250 of the leading figures in business gathered at the awards ceremony. This year, organizers said they noticed there were more local candidates that applied and that many local companies and […]
Casino operator MGM China is launching a number of Grand Opening Offers ahead of the opening of MGM Cotai on January 29, 2018. The Grand Opening Offers are available for booking starting November 21, with promotional offers catered to individuals, families and business travelers through flexible and high value packages. Offers start at MOP1,398 – […]
MGM COTAI swept the competition at the Asia Property Awards 2017, winning an impressive six awards. This makes MGM COTAI the most award-winning integrated resort in Macau, highlighting the company’s outstanding achievements in the field of resort development and architectural design within the highly competitive regional property arena. This is MGM COTAI’s second property recognition […]
MGM China announced on Friday it is no longer targeting a fourth quarter opening of MGM Cotai after assessing damage caused by Typhoon Hato which struck in August. After evaluating the damage, MGM says it expects to open the new resort on January 29, 2018. “The company has since evaluated the situation and developed a […]
Grant Bowie, chief executive officer of MGM China says the operator is currently working with the MSAR government regarding its Cotai opening, but did not disclose the opening date. Bowie made the comments during the MGM Lion Dance Championship-Junior Lion Dance Training Program ceremony on Tuesday, reported Macau Daily Times. “What we are doing is […]
MGM Resorts says it plans to attract more recreational gamblers than VIPs in its new Cotai property, which opens in the fourth quarter of this year. “Our business model is not predicated on the VIP business,” MGM Resorts International Chief Executive Officer James Murren said in an interview with Bloomberg TV. “Our strategic plan is […]
MGM Cotai, which is set to open in the fourth quarter of 2017, will include a first-of-its-kind dynamic theatre, called MGM Theatre, according to a company press release on Tuesday. Designed by Scéno Plus, a performance arts and entertainment design firm, the MGM Theater at COTAI is the world’s first theater to offer a 28 […]
MGM China posted a one percent decline in 17Q2 revenue as mass floor table games income fell two percent, while VIP gained just one percent. The company reported net revenue of $448.7 million, with its quarterly performance lagging that of its Macau peers to have reported so far. Its stock dropped more than 4 percent […]
MGM China posted a 1 percent decline in Q2 revenue as mass floor table games income fell 2 percent, while VIP gained just 1 percent. The company reported net revenue of $448.7 million, with its quarterly performance lagging that of its Macau peers to have reported so far. Its stock dropped more than 4 percent […]
MGM China reported a 7 percent gain in net revenue for 17Q1, driven mainly by an increase in main floor table game revenue due to a higher hold percentage. The company had revenue of $502.4 million in the period. Revenue from main floor table games rose 17 percent to $279.9 million with the hold percent […]
MGM China’s new resort on Cotai, which is scheduled to open in the second half of this year, will feature a permanent collection of more than 300 pieces of art, the company said. The works include antique carpets dating from the Qing Dynasty, modern and contemporary Asian paintings, and sculptures by renowned artists. Contributing artists […]
MGM Cotai unveiled a new golden lion statue on Wednesday, and has announced its Chinese name, 美獅美高梅 (Mei Si Mei), meaning “Beautiful Lion, Beautiful MGM.” According to local media, the ceremony was officiated by Pansy Ho, co-chairperson and executive director of MGM China Holdings Ltd.. “This gold-gilded lion statue reveals our passion and dedication for […]
MGM China’s new Macau casino launch date should be no later than October 1, say analysts. Analysts including JPMorgan and Telsey Group believe the project will open before October Golden Week, according to a report from Macau Business Daily, “Based on our on-the-ground checks…we believe the project can still open in August or September (ahead […]
MGM Resorts has pushed back the expected opening of its HK$24 billion ($3.1 billion) integrated resort, MGM Cotai, to the second half of 2017. “Given the complexity of the design of MGM Cotai and the Company’s commitment to a successful opening that reflects the demands of the current market, the expected opening time of MGM […]
MGM China has confirmed that its HK$24 billion ($3.1 billion) Cotai resort will open in the second quarter of 2017. “We believe it [MGM Cotai] will be well received by the market and we are confident to capture the growth opportunities of Macau,” said Grant Bowie, chief executive officer and executive director of MGM China. […]
Sand China’s newest development, The Parisian Macau has been given the same allocation as that of Wynn Palace – 150 total tables. The announcement was made by Macau’s Secretary of Economy and Finance, Lionel Leong over the weekend, according to a note from Union Gaming. Similar to that of Wynn Palace, the new development will […]
MGM China CEO Grant Bowie said he is “very confident” about the future of Macau’s gaming industry, as the region’s gaming operators shift their focus toward mass-market recreational gamblers. Bowie made the comments on the sidelines of a forum held at the MGM casino-hotel in Zape, when asked about his views on Wynn Resorts Chairman […]
The Macau government may have already surpassed the number of gaming tables it had planned to allocate by the end of 2017, according to analysts at Daiwa. Given the government’s three percent cap on gaming table growth, and looking at the number of gaming tables allocated so far, the analyst believes that the maximum number […]
MGM China CEO Grant Bowie says there will be no VIP gaming rooms in their upcoming MGM Cotai project, scheduled to open in the second quarter of 2017, local media reports. “We’ve already made the decision that we’re envisaging opening with only mass tables, and that’s obviously the basis of where we see the future […]
MGM China Holdings reported better-than-expected net income for the first half of 2016, attributed to an increase in premium mass-market gamblers and cost cutting measures. During the six-month period, MGM China recorded total revenue of HK$7.2 billion (US$928.3 million) in 16H1, down by 22 percent year-on-year. Adjusted EBITDA was HK$2.0 billion compared to HK$2.4 billion […]
Wynn Palace is on track for its August opening, while Sands China’s Parisian is likely to open in the third week of September, according to Union Gamings “Macau pipeline in pictures” report, released on Thursday. The report, which provides visual construction progress updates on all major gaming projects, made special mention of Wynn Palace, Sands’ […]
US-brokerage Union Gaming says it is forecasting MGM Cotai will achieve US$214 million in adjusted property EBITDA in 2017. The estimate is based on three quarters of operation. For its full year of operations, the brokerage said it forecasts $386 million of adjusted property EBITDA, said the brokerage in a note on Wednesday. While the […]
While MGM Cotai is still on track for late 17Q1 completion, there is a possibility the opening may hit Q2, said Bernstein in a note on Friday. “MGM China expects to complete all the government processes by the end of this year and maintains its target date of late Q1 2017, though there is the […]
Fitch Ratings said it predicts MGM China to generate around $600 million of EBITDA in 2017, according to a note on Tuesday. The ratings agency said the $600 million of EBITDA factors in about $200 million EBITDA at MGM Cotai and approximately 20 percent EBITDA decline at MGM Macau. Fitch also affirmed the IDRs for […]
MGM China posted a steep drop in Q1 earnings and revenue, but joined the growing chorus of Macau operators in saying they see signs of stabilization in the mass market. MGM China recorded total revenue of HK$3.6 billion, a decrease of 25 percent from a year ago, but narrower than the 31 percent year-on-year decline […]
MGM Resorts International said it’s delaying the opening of its new resort on Cotai due to the soft market conditions in Macau and the timing of other openings. MGM said it made the strategic decision to move the opening of its MGM Cotai development from the fourth quarter of 2016 to the end of the […]
Wynn Macau has sent a letter to the contractor developing its $4.1 billion Wynn Palace on Cotai warning of penalty payments should construction milestones fail to be met. The opening of the resort has already been delayed by three months to June 25th from an original launch plan in March. “We are concerned that with […]
MGM Resorts International said its MGM China unit has completed the refinancing of its Hong Kong-dollar denominated senior credit facilities, upping the size of funds available and providing the company with the flexibility to develop its MGM Cotai property. The restated accord consists of a term loan equivalent to U$1.55 billion, up from the previous […]
MGM Resorts made capital expenditures of $292 million in the first three months of 2015, of which $146 million related to MGM China, the company announced in a filing. In a quarterly report filed with the US Securities and Exchange, MGM said its capital expenditures at MGM China included $132 million related to the construction […]
Macau got off to a good start in January, with GGR in the initial weeks higher than expected, though few expect any return to the stellar growth rates of the past, with China still likely to be the driving factor for casino operators. Beijing’s crackdown on corruption triggered a two-year slump in gaming revenue and going forward the performance of its economy, efforts to control capital outflows and its ongoing fight against graft will all play a role in determining the strength of the local gaming market.
The multi-billion properties opening up on Macau’s Cotai strip are still likely to be viable, despite the slump in gaming revenue in the territory, though returns will fall far short of the levels expected when the resorts were first planned, analysts say. The six operators are set to almost double their room capacity over the next two years at a time of unprecedented uncertainty for the revenue outlook.
Integrated resorts have become a buzzword in the gaming industry, with investors and governments around Asia looking to the model as they prepare plans for new markets and properties. However, as gambling revenue in Asia's biggest resorts declines is the IR model the right formula for success?
The central topic of the G2E Asia conference 2015, around which the most interesting discussions revolved, was the state of gaming in Macau in light of the recent severe downtrend in gross gaming revenue and the VIP market.It was a bipolar conference. Two key panels could not have been more contradictory. Anyone attending just one would get an extremely one-sided message, as two seemingly divergent narratives were aired.
As the first quarter comes to a close, there seems to be little reprieve for Macau’s battered casino stocks, with analysts continuing to cut estimates on the back of weak Chinese New Year revenue and an ongoing stream of negative news. Although the February fall in gross gaming revenue was the worst on record at almost 49 percent, it wasn’t as bad as some had been expecting. Still the consensus is that the market has not reached a bottom as yet. Comments from both analysts and operators continue to reflect longer-term optimism, but agree there remains little near-term visibility. “February was very weak especially given Chinese New Year and a lot of analysts are revisiting their forecasts,” said Alex Bumazhny, an analyst at Fitch Ratings, which this week predicted a 4 percent decline for 2015 GGR. “The market is banking on a slow down in premium mass and on the whole it’s not looking so good for 2015.” It’s also unclear as to whether the regional operators which saw a sharp uptick in Q4 VIP revenue as high rollers fled Macau, will continue to benefit as China pledges no let up in its anti corruption drive. JP Morgan in a recent report cut its earnings and share price target estimates by 25 percent and said it now expects an 18 percent decline in 2015 GGR, while Deutsche Bank issued perhaps the most bearish forecast so far, predicting a 30 percent drop and slapping a sell rating on the Macau five operators apart from SJM Holdings, which was already rated sell. JP Morgan said it doesn’t expect a pick up in share valuations until April, pointing also to a series of regulatory overhangs in the market. Deutsche Bank says the GGR decline may extend into 2016. The Macau government will conduct an interim review of the gaming sector this spring and may provide more clarity on new table allocations to casinos. It is also likely to discuss the issue of inbound mainland visitors with Beijing and whether their movements will be further restricted. The government last year clamped down on transit visas to third country destinations and has said it may review the Individual Visa Scheme. “We believe the market would not give the benefit of the doubt, until such regulatory issues are proven to pass without any significant surprises,” the bank said. Citi is more upbeat, saying it believes the market may be at a turning point, but still sees no signs of recovery in the VIP sector. The firm recently cut its forecasts for 2015 market GGR to negative 16 percent, from its prior estimate for a drop of 4 percent. The Q1 results will follow on from a set of financial statements for Q4 that, while gloomy, were largely in line with expectations. “The results were more or less consistent with what we expected,” Fitch’s Bumazhny said. “Wynn lost some market share and that appears to have continued in Q1 which is a concern.” Wynn Macau, which currently has just one highly VIP focused property, posted the biggest drop in quarterly revenue so far. (Galaxy Entertainment will report on March 19th and SJM Holdings didn’t split out Q4 figures). Net revenues were $761.2 million, a 32 percent decrease from the $1.12 billion generated in the fourth quarter of 2013. Adjusted property EBITDA in the fourth quarter of 2014 was $241.2 million, down 35.5 percent. VIP turnover was down almost 40 percent, however the group has been renovating its casino floor which resulted in a drop in VIP tables to 244 in Q4 from 273 in the prior year. That renovation, which includes the addition of two VIP rooms and a new relationship with top junket operator Sun City, was scheduled for completion ahead of the Chinese New Year. Despite the weak Q4 for Wynn, analysts are generally reasonable bullish about its outlook. Sterne Agee’s David Bain wrote in a recent report that his buy recommendation on the stock remains intact and that investors have given little credit for its renovations and still less “to a top tier junket operator occupying one of its rooms that currently does not do business at its facility.” Bain and analysts at Citi also pointed to the fact that the opening of its new Wynn Cotai will be transformational for the company. Citi said the new property is likely to be the “premier” resort on Cotai, although the company indicated in its Q4 earnings call that the opening may be delayed. MGM China’s Q4 was also weaker than most had expected. Revenue fell 22 percent to $719 million, while adjusted EBITDA dropped 22 percent to $185 million. Like Wynn, MGM also cut Macau VIP tables in the quarter to 195 from 235. VIP table games revenue dropped 39 percent, while mass floor revenue jumped 19 percent, reflecting an increase in main floor games up to 228 from 195. UBS analyst Robin Farley points out the mass performance in the quarter was “impressive,” above the firm’s 18 percent growth forecast and the market consensus for a drop of 16 percent. The group said it remains on schedule for the planned opening of MGM COTAI in 2016. The expected total development cost is approximately HK$23 billion, excluding land costs and capitalized interest. It also announced plans to spend $100 million on revamping the main floor at its existing MGM Macau. Sands China as expected benefited from its bias towards the mass market and its higher capacity than other operators. Total net revenue declined 16.2 percent in the quarter to $2.12 billion, while adjusted property EBITDA decreased 14.7 percent to $713.2 million. Mass revenue was down 9 percent, while premium mass was down 17.5 percent. VIP volume was down 42 percent. “In Macau, we like its peer-high weighting to mass gaming (higher visibility and margins than VIP), peer-high hotel room capacity amidst strong visitation growth and gaming position lead in Cotai,” Sterne Agee’s Bain said. The company noted on its earnings call that there is room for improvement to its Q4 margin of 34 percent going forward, as the drop in the mass market was so rapid towards the end of the year that it had not had time to adjust expenses. However, analysts also noted that the company is no longer giving a specific time frame for the opening of its Parisian Macau resort, saying that the target remains “sometime in 2016.” UBS’ Farley says that the U.S. casino giant will need the Macau government to approve more labor to achieve that date. Melco Crown saw its Q4 revenue drop 20 percent, although again analysts are slightly more upbeat about the company’s prospects given the opening of its Studio City property later this year. The consensus view is still that added capacity will drive growth, although Deutsche Bank’s latest note even casts doubt on this theory. The opening of two new gaming venues this year isn’t expected to boost demand, and the market is underestimating pressure on casino operators’ profit margins, the German bank’s analysts noted this week. Melco’s adjusted property Ebitda was down 29 percent to $278.6 million. SJM’s annual gaming revenue dropped 8.8 percent to HK$79.3 billion, but CEO Ambrose So said it had been a challenging year, with a deterioration in the last half. So said that investors should not expect any sharp rebound in casino earnings in 2015, although is cautiously optimistic that revenue will stop falling in the second half of the year. ****** MPE