In January, MGM China achieved a significant milestone, exceeding a 20% market share for the first time in its history. This remarkable accomplishment, amidst the backdrop of a post-COVID surge, underscores the company’s strategic prowess and resilience in navigating the challenges of the Macau market. Bill Hornbuckle, CEO and President of MGM Resorts, lauded this achievement during the company’s 4Q23 earnings call, signaling a new era of competitiveness for MGM in Macau.
Unveiling MGM’s Strategic Advancements:
MGM’s ascent to a market share exceeding 20% in January heralds a transformative phase for the company. While the sustainability of this achievement remains uncertain, Hornbuckle’s remarks underscore MGM’s strategic repositioning, positioning it to rival its larger counterparts in Macau. The revitalization of MGM Macau and MGM Cotai has been pivotal, empowering the company to compete on equal footing with industry giants.
Financial Triumphs and Growth Trajectory:
MGM China’s financial performance has been nothing short of stellar, with record-breaking Adjusted Property EBITDAR reported for both the December 2023 quarter and FY23. These financial milestones propelled the company’s market share for Q4 to 16.3% and FY23 to 15.1%, surpassing pre-pandemic levels by a significant margin. The addition of 200 new gaming tables, secured under a 10-year gaming concession, has been instrumental in driving this impressive growth trajectory.
Current Success and Optimism for the Future:
Kenneth Feng, President and Executive Director of MGM China, provided encouraging insights into the company’s current performance during the Chinese New Year period. Visitation to Macau has surged to approximately 95% of 2019 levels, with MGM China’s properties witnessing substantial increases across key metrics compared to the same period in 2019. From visitation to player count and from table drop to VIP turnover, MGM China’s robust performance reflects a buoyant outlook for the company.
MGM China’s attainment of over 20% market share in January represents a watershed moment in its journey of resurgence. Fueled by strategic acumen, financial milestones, and sustained performance, the company has cemented its position as a formidable player in the Macau market. As MGM China charts its course forward, it does so with confidence, poised for continued growth and success in the dynamic landscape of Macau’s gaming industry.