MGM executes strong first quarter performance with record-breaking revenues

MGM China Holdings Limited has reported record-breaking financial results for the first quarter of 2024, outperforming the industry’s recovery in Macau.

The casino operator saw net revenue surge 70.6% year-on-year to HKD8.3 billion, reaching 143% of pre-pandemic levels in the first quarter of 2019. Adjusted EBITDA skyrocketed 77.3% to HKD2.5 billion, marking a new high and representing 155% of Q1 2019 figures.

MGM China’s market share in Macau reached an all-time high of 17% in the first quarter, up from 15.2% in 2023 and 9.5% in 2019. The company’s mass market gaming segment saw particularly strong growth, with mass GGR recovering to approximately 110% of pre-COVID levels.

“We are delighted to have achieved record-breaking results in the first quarter this year. This is mainly driven by the Company’s deep understanding of the market, especially our extensive insights in premium mass customers,” said Kenneth Feng, president and executive director of MGM China.

“Our efficient and agile business strategies are the key driving factor for us to seize opportunities arising from the resumption of global tourism,” he added.

Meanwhile, as cited in an earnings call with analysts, MGM Resorts noted that MGM China and MGM Resorts both agree there is no longer a need for MGM to support its liquidity. In March, the subordinated loan agreement was terminated.

Bill Hornbuckle, CEO and president of MGM Resorts, revealed that new villas at MGM Macau and Suites in Cotai will be introduced because, in his words, “We are under-seated in that market.”

Leading market in smart table implementation

The gaming operator asserts that it has “at least several years lead” in the implementation and use of “smart tables” over its competitors in the Macau casino market.

In the earnings call, Hubert Wang, president and COO of MGM China, stated that while other operators are striving to adopt smart tables, MGM China has a significant advantage.

These smart tables enable gaming chip tracking and authentication, providing operators with valuable customer data for precision marketing and new game development. “For instance, we already launched insurance [bet] baccarat in this market and this is impossible to do manually,” Wang said.

Feng, meanwhile, noted the company had this technology in place since 2016, giving it a significant head start. Feng credited the company’s “deep understanding” of its premium mass customers as a key differentiator, stating, “What differentiates us in the market is that company-wide, we possess a deep outstanding of our customers, particularly the premium mass segment, encompassing their culture, habits, behavior, background profiles, and even their home provinces and dialects.”

Staff Reporter