MGM China 2018 revenue up 33 pct on Cotai ramp up

MGM China reported a 33 percent increase in revenue for the full year 2018, spurred by the opening and ramp up of MGM Cotai during the year.

Total revenue reached HK$19.2 billion, increasing approximately 33 percent year-on-year, while adjusted EBITDA reached HK$4.8 billion. Increasing 4.3 percent year-on-year.

MGM said that its MGM Cotai property has continued to ramp up since it opened in February 2018, with all gaming segments recording strong sequential growth in volume and win.

Company-wide, MGM recorded a growth of approximately 34 percent year-on-year for mass table win, 59 percent growth for slot win; and 13 percent growth for VIP table game win.

Grant Bowie, chief executive officer and executive director of MGM China said: “We are building the momentum at MGM Cotai. We are also very excited about the launch of Mansion villas which aim to provide unique and exclusive experiences for our high-quality customers. Our focus is on getting all the elements at MGM Cotai fully open and continue to take market share. We believe MGM COTAI will drive greater product diversification and bring more advanced and innovative forms of entertainment to Macau as it grows as a global tourism destination.”

The company’s fourth-quarter results were ahead of consensus and Bernstein estimates, largely due to higher-than-expected VIP volume and high VIP hold, according to a note from Bernstein on Thursday.

Property EBITDA of HK$1.41 billion was 10 percent above both consensus and Bernstein estimates. Net revenue was HK$5.38 billion,  6 percent above Bernstein expectations.