MGM Resorts International underscored substantial growth and strategic developments in the Asian market, with the group’s CEO, Bill Hornbuckle, revealing he will travel to Thailand next month together with MGM China’s executive director, Pansy Ho, to assess its market potential.
“That is a venture that we’re interested in. And if we do that, we’ll do it through MGM China Holdings”, Hornbuckle commented in MGM’s second-quarter conference call.
In the previous quarter, the MGM Resorts President and CEO had stated that the cost of doing business in Thailand and the estimated margins would make the possible future gaming market “very compelling”.
In the most recent conference call, Jonathan S. Halkyard, Chief Financial Officer, detailed the financial achievements of MGM China, stating, that “in Macau, MGM China net revenues grew 37 percent year-over-year, achieving a market share of 16 percent”.
This robust performance resulted in adjusted property EBITDAR of $294 million for the quarter, reflecting a 40 percent increase with margins at 29 percent.
Halkyard emphasized the company’s efforts to fortify MGM China’s financial position, including the issuance of $500 million notes due 2031 to pay down outstanding borrowings, enhancing their balance sheet’s strength.
Meanwhile, Hornbuckle also provided updates on the company’s international projects, particularly its MGM Resorts/Orix consortium project in Osaka.
“I just recently returned from Japan and it’s moving along nicely. We are in the ground as we speak, and we hope to start pylons by May or June of next year with a target state still middle of 2030 for opening”, he said.
Hornbuckle also highlighted MGM’s strategic positioning in the UAE and ongoing progress in New York, with notable developments expected in Dubai and anticipated submissions for the New York project by the end of 2025.
“With the UAE, I think the great news is now that they’ve announced the lottery, which is something that they say we’d do. I’m encouraged that the rest of this will roll out as defined,” Hornbuckle commented.
The United Arab Emirates (UAE) General Commercial Gaming Regulatory Authority (GCGRA) launched its official website and issued its first federal lottery license this week.
“Now the timing is still unknown. It kind of keeps moving around. But I can’t imagine by the end of this quarter or early next – we won’t know with some specificity, around what it means for Abu Dhabi and then potentially what the umbrella language is as it relates to all of the other Emirates. We’re excited by it.”
MGM is developing a non-gaming resort in Dubai, the UAE’s largest city, with three hotel towers totaling 1,500 rooms branded under the Aria, MGM Grand and Bellagio names.
The MGM CEO indicated the group is “excited” by its positioning in Dubai. ”We’re driving pylons right now. And that facility has accommodation for a large-scale casino”.
“So there’s a lot of opportunities throughout the region. Probably the initial license is going to be spoken for, I believe. But I would suggest that each Emirate will have its own opportunity to issue a license”, he commented.
