Macau (MNA) – Analysts from Sanford C. Bernstein considered that MGM China’s results in the last quarter of 2018 were ahead of previous consensus and estimates, due to ‘higher than expected’ VIP rolling volume in both MGM Macau and MGM Cotai.
MGM China net revenue in the last months of 2018 increased 33 per cent year-on-year to HK$5.38 billion, with property EBITDA jumping 9 per cent, results above previous Bernstein estimates.
‘The bulk of the share gain came from MGM’s VIP business, which was largely helped by high hold […] Focus for the company is to continue to gain market share with the ramp up of MGM Cotai. While the CNY holiday saw high visitation, gross gaming revenues were more muted. However, there has been a pickup in higher end players during the past week which is likely to continue throughout the rest of the month,’ the brokerage indicated in a note released today.
VIP rolling volume in both MGM Macau and MGM Cotai was 12 per cent above Bernstein estimates with VIP-hold also above normal at MGM Cotai at 4.37 per cent.
The brokerage also noted that MGM Cotai also recorded stronger-than-expected mass and slot GGR, although partly offset by mass market at MGM Macau, where mass table dropped 12 per cent quarter-to-quarter and slot handle by some 41 per cent.
With all five junket rooms now open, Bernstein analysts expected VIP results to improve as MGM Cotai’s high-end hotel Mansion villas ar expected to ‘soon start receiving guests’.