Macau (MNA) – MGM China results were ‘in line’ with expectations, analysis from brokerage firm Bernstein said today.
In its investment implications assessment, Bernstein indicated that the company ‘has strength in Mass with outsized operational performance and strong Premium Mass execution at MGM Macau.’
In the meantime, Bernstein noted there are hurdles in the near-term as the company is losing market share in its coming property in Cotai, as well as in VIP gaming. A shift in this trend is directly linked to the ‘successful ramp up of MGM Cotai,’ the brokerage and research firm stated.
In the analysis, Bernstein says that the opening of MGM Cotai, expected in January 29, 2018, ‘will have the largest incremental expansion with respect to footprint, room inventory and gaming capacity (relative to other operators); however, full value from the property is still a ways off.’
The report added that ‘the company is expanding its VIP presence at MGM Macau in early December with the addition of a new mistier junket room.’
‘We remain concerned about the company’s ability to fully defend its position on the Peninsula over the next few quarters,’ the report states. ‘While the expansion to Cotai … will give the company an advantage in the Mass segment once the property ramps up, we remain cautious due to peninsula headwinds and slow ramp up risk,’ it read further.
[Edited by Sheyla Zandonai]