Gaming | MGM Cotai opening postponed to 2017

MGM China Holdings Ltd., a venture between Pansy Ho and MGM Resorts International, announced yesterday that the opening of its Cotai property has been postponed until the end of the first quarter of 2017. The resort was initially slated to open in the fourth quarter of this year.
In a press release regarding the quarterly results, the gaming operator states that the decision was made after consideration of current market conditions and the timing of other resort openings in the area.
“We believe the extra time will allow us to further fine-tune our offerings in an evolving marketplace, ensure that we are being as efficient as possible, and ultimately come out with a spectacular end-product offering unique MGM experiences to the market. We believe this is the right decision for a healthy launch and long term success of MGM Cotai,” the press release states.
The construction budget for the property remains at HKD4 billion.
MGM China yesterday reported quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of HKD1.1 billion, up 1 percent from the previous quarter. The property EBITDA margin grew for the third consecutive quarter and reached 29.07 percent, a 2-percent sequential improvement. The main floor accounted for 81 percent of profit in the fourth quarter.
During Q4, main floor table games winnings were up 12 percent sequentially, while VIP table games win was down 22 percent. Occupancy of MGM Macau hotel rooms remained high at 97.5 percent, with revenue per available room up 4 percent sequentially to HKD2,367.
Over the whole year of 2015, MGM China recorded total revenue of HKD17.2 billion, a decrease of 33 percent from a year ago. Adjusted EBITDA was HKD4.7 billion (2014: HKD7.1 billion). Basic earnings per share was HKD82 cents (2014: HKD1.5). PB

mgm resorts loss misses estimates

MGM Resorts International posted a fourth-quarter loss as ongoing weakness in Macau constrained profits. The largest operator of casinos on the Las Vegas Strip reported an adjusted loss of 1 cent per share, compared with the 8-cent average from analysts’ estimates. Revenue amounted to USD2.19 billion, falling short of the $2.25 billion estimate.