Bill Hornbuckle, chief executive and president of MGM Resorts International, the parent company of the Macau casino operator MGM China Holdings Ltd., says “business is booming” in Macau.
The group added in a call on Wednesday after MGM Resorts’ Q3 earnings report that it was working to capture this boom as much as possible with an upgrade to MGM Kotai’s gaming zone and six villas in MGM Macau.
Referring to the recent holidays of mainland Chinese consumers over the last two days of September and the first six days of October, Mr Honbuckle (file photo) said MGM China had “an incredible golden week in October with over 15% market share, and adjusted its property EBITDA [earnings before interest, taxation, depreciation and amortization] for the month to record highs.”
The figure of 15% was understood to represent a share of Macau casino gross gaming revenue (GGR).
MGM China’s “monthly market share increased from 14.3% to 15.5% in the third quarter,” analyst Andrew Lee of brokerage firm Jefferies Hong Kong said in a note Wednesday
Mr. Hornbuckle said, “Thanks to the team’s ingenuity and execution at MGM China, the results were outstanding.”
The group CEO added: “We are still laser focused on three key priorities: maximizing returns, managing public and premium public customers, and driving international tourism by changing casino floors and existing cabin products.”
He said, “MGM Cotai will start remodeling the Platinum [Gaming] area for completion early next year, and MGM Macau has started plans to upgrade the villa [lodging] with six more villas added.”
Mr. Hornbuckle said MGM China holds “about 3 percent of its sweet products” in the Macau market.
“I think we’re stepping on every cylinder there and doing the right thing,” he added.
Hubert Wang, president and chief operating officer of MGM China, was asked about player reinvestment rates in the Macau market. During a third-quarter call Tuesday from market rival Melco Resorts & Entertainment Ltd, management acknowledged that player reinvestment had risen somewhat in the market competition.
From MGM China’s perspective, Mr. Wang said in terms of marketing programs, “We have never seen any irrational behavior among all operators.”
“In terms of our own reinvestment, it remained fairly stable throughout the quarter, even at the premium mass level,” added MGM China CEO.
He said, “There are a lot of concerts and events that attract a lot of people to Macau, and I think that’s playing a part in the GGR.”
Wang said the Macau government’s recent forecast of a $27 billion GGR in 2024 “is in line with our beliefs and expectations.”