Strong booking trends and premium mass focus underpin the operator’s optimistic outlook following double-digit revenue and EBITDA growth in the fourth quarter.
Macau.- MGM China Holdings has reported sustained momentum in the Macau market, with management pointing to the absence of a traditional seasonal slowdown ahead of major holidays such as Chinese New Year (CNY). Speaking during MGM Resorts International’s fourth-quarter earnings call, MGM China CEO Kenneth Feng described the environment as a “new phenomenon”, noting that “even ahead of a holiday, there’s no slow period”.
MGM China posted strong Q4 net revenue of US$1.24bn, up 21.4 per cent year-on-year, and adjusted EBITDAR of US$332.3m, up 30.5 per cent. The results reinforce the operator’s confidence heading into CNY, a peak travel period on the Chinese mainland. “As to the Chinese New Year, we are very optimistic. We see very, very encouraging booking trends,” Feng said, adding that demand for high-end accommodation was exceeding capacity.
According to the CEO, MGM China is benefiting from a focus on premium mass rather than volume-driven growth. With “limited room inventory”.
“We are very focused on quality over quantity, and yield management is always our strength,” Feng stated. He said player quality “is very high” and that the company has “a long waiting list for our top players” during the holiday period.
Feng said MGM China had seen “very rational competition” over recent quarters, while maintaining consistent margins in the mid-to-high 20 per cent range.
Strong booking trends and premium mass focus underpin the operator’s optimistic outlook following double-digit revenue and EBITDA growth in the fourth quarter. Macau.- MGM China Holdings has reported sustained momentum in the Macau market, with management pointing to the absence of a traditional seasonal slowdown ahead of major holidays such as Chinese New Year (CNY)….
