Macau (MNA) – Gaming analysis of MGM China’s results on Wednesday highlight that the company’s performance exceeded expectations in the last quarter of 2017.
Union Gaming report reveals that EBITDA results were ‘above consensus’ and maintain the ‘buy rating on shares of MGM China as it is one of the best ways to play the continued strength in Macau, particularly at the high end of the market.’
Margaret Huang, from Bloomberg Intelligence, indicated that the property showed ‘strong business across both in VIP as well as in mass segments.’ Click here to watch a full video in Mb.tv with her analysis.
Bernstein analysis refers to MGM China’s performance exceeding expectations during the last quarter of 2017.
The brokerage firm’s report states that despite VIP gross gaming revenue being almost flat year-on-year, ‘mass showed significant improvement,’ helped by table drop improving 10 per cent year-on-year.
‘We remain concerned about the company’s ability to fully defend its position on the Peninsula after the Cotai opening and we are sceptical of a strong Cotai ramp up,’ Bernstein’s report says.
In a similar vein, a Morgan Stanley report indicates that quarterly EBITDA was ahead of estimates by 8 per cent, ‘driven by better-than-expected mass.’ The assessment says that the net debt/trailing EBITDA decline for the period ‘should help drive higher dividend payout in 2019.’
‘MGM China is our top pick for 2018 as we expect MGM Cotai to drive the highest EBITDA growth for MGM China among peers of 40 per cent in 2018,’ says the Morgan Stanley report.
The company’s net revenue went up 3 per cent yearly to HK$15.4 billion, MNA previously reported.
