A ground breaking ceremony for MGM Osaka, Japan’s first integrated resort (IR) with casino, is to be held on April 24 this year, said on Wednesday Bill Hornbuckle, chief executive and president of MGM Resorts International, one of the scheme’s main backers.
Management at MGM Resorts – majority owner of Macau operator MGM China Holdings Ltd – also mentioned that gaming demand post Chinese New Year had been strong.
Mr Hornbuckle and his colleagues were speaking on MGM Resorts’ fourth-quarter earnings call.
The JPY1.27 trillion (US$8.22 billion currently) project at Yumeshima (pictured in a file photo), an artificial island in Osaka Bay, involves a consortium that also features Japan’s Orix Corp as a main partner, and a number of other Japanese businesses as minority investors.
In its previous commentary on Japan, MGM Resorts had reiterated the scheme was still scheduled to open in late 2030.
The MGM Resorts CEO stated on Wednesday: “[MGM] Osaka is advancing as planned, ground preparation is targeted for completion this year, with main construction set to commence shortly thereafter.”
He added on the call: “The official ground breaking ceremony is scheduled for April 24th. Additionally, the opening of the Yumeshima subway [station] in January marks a significant infrastructure milestone, enhancing transportation options for future guests to our resort.”
In commentary on Macau, Mr Hornbuckle stated: “We achieved the best-ever full-year segmented adjusted EBITDA [earnings before interest, taxation, depreciation and amortisation] in the history of MGM China.”
In that market, the Macau unit runs the MGM Macau resort on the city’s peninsula, and MGM Cotai in the Cotai district.
The group CEO stated on the call: “We continue to be a high-performing outlier in the market with exceptional execution by the team.
“Macau 2049, our first residency show at MGM Cotai, and the [Poly MGM] Museum at MGM Macau, which saw over 10,000 people in one day during Chinese New Year, are both important steps to driving non-gaming revenues and visitation to Macau.”
Post Chinese New Year demand
Mr Hornbuckle said that in the fourth quarter, the company “grew market share in December to over 16 percent” in terms of casino gross gaming revenue (GGR), and “concluded the year at similar levels.”
The group CEO said: “We remain confident, and believe we have proven that sustainable market share in the mid-teens [of percent] is driven by our strong product-innovation teams, and the focus on the premium mass market.”
The executive also gave comment on the recent Chinese New Year trading. This year on the Chinese mainland – Macau’s main tourism feeder market – the break was from January 28 to February 4, inclusive.
Mr Hornbuckle stated: “We had a great Chinese New Year in terms of market share – particularly win and visitation.”
Kenneth Xiaofeng Feng, president and an executive director at MGM China, also gave some colour on the trading period.
He stated: “We had a pretty solid Chinese New Year. Both properties reported strong traffic: about 18 percent higher than the 2024 Chinese New Year.”
“Gaming volume was also higher than last year’s Chinese New Year and we have maintained our mid-teens of market share,” he added.
Mr Feng stated: “Particularly, I want to point out we have noticed a longer ‘tail’ to Chinese New Year” demand, “with a higher percentage of players arriving in post Chinese New Year holidays, versus 2024″.
“Actually, our business volume was in the second week” of the Year of the Snake “almost as strong as the first week of Chinese New Year,” he added.
