The company’s senior executives said they will continue to use data analysis to navigate and capitalise on market trends, which they believe gives them an advantage over their five main rivals, namely Galaxy Entertainment, Melco Resorts, Sands China, SJM, and Wynn Macau.
MGM China reported a net revenue of HK$8.3 billion (US$1.06 billion) for the first three months of 2024, marking a 70.6 per cent increase compared to the same period last year. The figure represents a 143 per cent increase over the first quarter of 2019, before the Covid-19 pandemic.
It beat the consensus estimate of analysts by 11 per cent, according to an HSBC report.
The company achieved record adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) and market share during the period.
Its market share in Macau rose to 17 per cent in the first quarter of 2024, up from 15.2 per cent in 2023 and 9.5 per cent in 2019.
“The market share for March was 15.8 per cent, and we are pretty much stable on that front. We see a slightly higher number in April but around that [number],” said MGM China president and chief operating officer Hubert Wang during an earnings call on Thursday.
Adjusted Ebitda reached HK$2.5 billion for the quarter ended March 31, signifying growth of 77.3 per cent from ta year ago and a 155 per cent increase from the first quarter of 2019, according to the company.
Kenneth Feng, executive director and president of MGM China, attributed the positive results to the company’s “deep understanding of its customers, particularly in the premium mass market segment”.
Feng highlighted the firm’s knowledge of “customers’ culture, habits, behaviours, backgrounds, home provinces, and dialects”.
Macau casinos finally dealt a winning hand after China reopens borders
Macau casinos finally dealt a winning hand after China reopens borders
He was speaking on the first-quarter earnings call of the firm’s majority owner, MGM Resorts International, on Thursday. MGM Resorts posted a 23.3 increase in earnings and a 4.8 per cent rise in revenues for the first quarter.
MGM China has invested in “smart tables” technology since 2016. It enables casino chips to be tracked and authenticated, enhances gaming security and enables the monitoring of customer behaviour.
“Everything is tracked and it’s very difficult to cheat a game. It’s almost impossible,” Wang said.
The technology also provides a wealth of data, allowing for precision marketing based on customers’ playing levels and making the development of new games easier, he said.
While its competitors are expected to implement smart tables later this year, Wang believes they MGM China has a few years of lead time in effectively leveraging the data through detailed analysis.
MGM China aims to achieve a stable mid-teens market share in the mass market segment and remains confident of delivering target margin levels of high-20s to 30 per cent, according to the company’s management.
HSBC raised its estimates for the company, taking its target price up to HK$18 from HK$15. MGM China’s shares rose 4.82 per cent to close at HK$13.92 after the results were announced on Thursday.