Deutsche Bank ups MGM China EBITDAR forecast
Deutsche Bank cited strong October results and market share gains.
Macau.- Analysts from Deutsche Bank have revised their forecast for MGM China’s fourth quarter EBITDAR from US$231m to US$254m. The adjustment is mainly due to the strong performance in October, when the company achieved record monthly EBITDA and a 15.5 per cent market share in gross gaming revenue (GGR).
Deutsche Bank noted that the strength in October is likely to have continued into subsequent months. It highlighted the advantage of 200 incremental tables during high volume and holiday periods such as Golden Week and the upcoming Chinese New Year.
MGM Resorts will report fourth quarter 2023 results on February 13, after the market close.
In the third quarter of 2023, MGM China posted net revenue was HK$6.4bn (US$812.52m), up 9.7 per cent in quarter-on-quarter terms and 10 per cent when compared to pre-Covid-19 levels. The casino operator reported positive adjusted EBITDA of HK$1.9bn (US$243.1m), up 122 per cent compared to the second quarter of 2019 and 7.9 per cent from the preceding quarter.
