MGM China should report Adjusted EBITDA of around HK$2 billion (US$250 million) for the December 2024 quarter, representing a 5% quarter-on-quarter increase and continuing its post-COVID momentum, according to investment bank Jefferies.
Gross gaming revenue is also tipped to grow by 7% quarter-on-quarter to HK$8.5 billion (US$1.1 billion), outperforming market growth of 3% with the company again gaining market share at 15.8% – up from 14.8% in Q3 although lower than the 17.1% achieved in Q1.
In a note, Jefferies analysts Anne Ling and Jingjue Pei noted that the forecast 5% quarter-on-quarter growth in Adjusted EBITDA at a 27% margin would be slower than GGR growth due to more operating expenses. MGM China recently launched the Poly MGM Museum at MGM Macau as well as its Macau 2049 residency show at MGM Cotai.
The company’s results are due for release on 13 February, with Jefferies maintaining its “BUY” rating on stocks despite a “tough comp for 1H25 based on historical trends.”
MGM China broke multiple company revenue and EBITDA records last year, with the company’s President and Executive Director Kenneth Feng crediting the performance to its “deep understanding” of its premium mass customers.
However, MGM has also tipped a far more competitive Macau market in 2025 as fellow concessionaires open up new high-end suite product and complete the roll-out of smart table technology across their casino floors.
