In a recent preview of 1Q24 results, Citibank highlights MGM China’s strategic lead in the Macau gaming industry. The report underscores MGM’s sustained technological advantage through smart gaming table adoption, positioning it as a top performer likely into 2025.
Technological Innovation and Market Advantage
MGM China’s early adoption of smart gaming tables and RFID technology has propelled its market share growth in 2023 and 2024. According to Citi analysts George Choi and Ryan Cheung, these innovations are more than just trends—they represent tangible advantages in operational efficiency and customer engagement.
The strategic use of smart gaming tables has not only enhanced player experiences but also optimized operational performance. This technological edge has enabled MGM China to outperform competitors and is anticipated to continue driving growth well into 2025.
Financial Performance and Growth Forecast
Citi’s 1Q24 outlook anticipates a 2% quarter-on-quarter EBITDA growth for Macau, slightly below the 6% GGR growth due to operational constraints, particularly in February. However, MGM China is expected to buck this trend, showcasing robust performance alongside SJM Resorts, driven by factors like smart technology adoption and effective marketing strategies.
MGM China’s Market Position and Citibank’s Recommendations
Given its impressive trajectory and technological foresight, Citibank now ranks MGM China as its top pick in Macau. The bank has revised its target price for MGM China shares upwards from HK$16 to HK$17, reflecting strong confidence in the company’s ability to maintain and expand its market share.
MGM China’s proactive approach to technological innovation in the gaming sector has positioned it as a frontrunner in Macau. The sustained adoption of smart gaming tables, coupled with strategic marketing efforts, is projected to fuel continued growth and market dominance for the foreseeable future.