Better industry penetration and pickup in customer traffic come as earning margins remain under pressure.
MGM China’s market share tops 17 percent in latest quarterly results
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MGM China reported unaudited sales growth of 4.9 percent to HK$8.9 billion (US$1.1 billion) during the third quarter of the year. Topline growth at MGM Cotai gained 6 percent to HK$5.4 billion while the peninsula’s MGM Macau rose 2.2 percent.
Total adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) came in at HK$2.4 billion, virtually unchanged from last year. The Cotai property’s EBITDA climbed 4.4 percent to HK$1.5 billion while peninsula’s dropped 5.4 percent to HK$864 million.
Lingering market competition continued to squeeze margins. Total adjusted EBITDA margin slipped 110 basis points to 26.8 percent. MGM Cotai slid 40 basis points to 28.1 percent while MGM Macau fell 200 basis points to 24.9 percent.
Operationally, MGM Macau reported higher win rates on its main floor tables and slots, though commission and incentive expenses expanded 17 percent. On the Cotai side, win rates improved for both main floor tables and slots, whereas VIP table win rates declined, with commissions increasing by just 2.7 percent.
[See more: Macao casino operators commit 9 billion patacas to SAR government guidance fund]
Total commission and complementaries rose 8 percent, representing 22.6 percent of its GGR, unchanged from last quarter but higher than the 22 percent from a year ago, noted CLSA’s gaming analyst Jeffrey Kiang in comments sent to The Bay.
According to the company’s press release, daily visitors jumped 10 percent from the previous year, alongside a 5 percent uptick in gross gaming revenues (GGR). Mass GGR, including slot operations, also inched 5 percent higher. Daily GGR was negatively impacted by the World Cup tournament.
Market share surpassed 17.1 percent with MGM Cotai taking in 10.5 percent and MGM Macau holding 6.6 percent. GGR market share was 16.4 percent last quarter, the brokerage says.
Macao casinos: GGR outlook downgraded
With few supportive macro indicators, CLSA downgraded its overall GGR growth outlook to 2 percent for 2027 and 4 percent in 2028, removing 19.5 billion patacas (US$2.41 billion) over the two-year period following the revelation. The 2026 outlook of 253 billion patacas was left unchanged.
[See more: CLSA: VIP win rates to drive Macao casino quarterly earnings]
The sector is missing an immediate catalyst, Kiang remarked. Macao’s GGR dropped 1.2 percent in September, extending its fourth consecutive negative reading, which came in below consensus estimates. Compounding the weakness was last year’s low base when the gambling tables were offline for 33 hours due to Super Typhoon Ragasa.
