Macau gambling industry seems to have closed the page where pandemic impacted the business. Eleven months after the January 8, 2023 re-opening of the casino facilities, the stakeholders are no longer referring to the constantly rising revenue figures as a market recovery trend but continue to record all-time record performance. ”Business is booming,” says Bill Hornbuckle, CEO and President of MGM Resorts International, as its daughter company MGM China reports net revenues of US$813 million for the period from January 1 to September 30, 2023.
Soaring Revenue Figures:
The net revenue figure reportedly represents an 829% higher level when compared to the same period last year which seems to be losing the benchmark status as the 2023 market performance has brought figures so many times higher than the year 2022 that the comparisons may only indicate an entirely booming fashion. But the fact that the MGM’s nine month result simultaneously stands for a 10% improvement over the pre-pandemic levels testify about the Macau gambling industry turning a new page in its business history.
In that sense, Inside Asian Gaming (IAG) reports that Adjusted Property EBITDA (earnings before interest, tax, depreciation, and amortization) soared in the Q3 2023 to US$226 million against the US$70 million loss sustained in the third quarter of 2022. The comparison with the pre-COVID levels show that MGM China ended the quarter with a 23% higher EBITDA than the one reached in the third quarter of 2019. As reported by the source, MGM China said that the result represents an all-time Q3 record. On top of that, the company generated 42% higher gaming floor revenues than in Q3 2019.
Booming Revenues Across All MGM Properties:
The brilliant results have reportedly been achieved across all MGM gaming properties in Macau, with revenues exceeding the 2022 levels more than 10 times. As GGRAsia reports, the company recorded a 15.5 % market share across the quarter, up from 14.3 in Q2 2023. As indicated, the company seems to have got back to the track and is now running full speed to make up for the time lost during the past closures.
MGM CEO and President, Bill Hornbuckle reportedly said: “We started the quarter with great momentum across our businesses. While we were faced with a difficult cybersecurity issue in September, our employees rose to the occasion with incredible resilience and determination. With the incident now behind us, we are a stronger company having been through the challenge.”
Looking at the upcoming opportunities, he reportedly added: “Going forward we have much to be optimistic about with Formula 1’s inaugural Las Vegas race next week and early next year the debut of the MGM Collection with Marriott Bonvoy followed by the Super Bowl. Beyond these catalysts, MGM China is performing exceptionally well, and we have a pipeline of development opportunities including New York and Japan alongside the growth and development of our international digital business and BetMGM.”
$27 Billion Forecast:
As Hornbuckle reportedly said, Macau gambling business is booming as the region reported around 23 million visits for the first ten months of 2023. For this reason, GGRAsia reports that Hubert Wang, MGM China CEO and President, said that the total region’s gross gaming revenues of US$27 billion forecast made by the Macau authorities for 2024 was “consistent with [MGM’s] belief and expectation.”