• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

MGM Cotai EBITDA US$250mln once fully ramped: Fitch

Oct 22, 2019 Newsdesk Latest News, Macau, Top of the deck, World  


MGM Cotai EBITDA US$250mln once fully ramped: Fitch

Fitch Ratings Inc forecasts that the MGM Cotai casino resort (pictured), in Macau’s Cotai district, will generate nearly US$250 million in incremental earnings before interest, taxation, depreciation and amortisation (EBITDA) “once fully ramped”. The forecast was included in a Monday report on the outlook of U.S.-based casino operator MGM Resorts International, the parent of Macau gaming firm MGM China Holdings Ltd.

The ratings agency said it expected “low single-digit declines” in Macau gross gaming revenues market-wide for 2019. “MGM will gain market share as MGM Cotai continues to ramp up, following the introduction of VIP operations in late 2018,” it stated.

It added: “Fitch’s favourable long-term view on Macau is supported by an expanding middle class in China and infrastructure development in and around Macau.”

In July, MGM China said its VIP offer in Cotai spurred a 41-percent growth in the company’s second-quarter EBITDA. The firm said its Cotai property recorded an adjusted EBITDA of about HKD487.5 million (US$62.2 million) in the second quarter, up from HKD196.3 million in the corresponding period last year.

Grant Bowie, MGM China chief executive, said at the time: “We are excited to see the ramping up of MGM Cotai. The recent opening of The Mansion offers exclusive luxury to the next level and helps us be better positioned in the premium segment.”

The US$3.4-billion MGM Cotai opened in February 2018. In March this year the venue’s promoter added to its facilities The Mansion, a high-end accommodation cluster aimed at VIP players.

In Monday’s report, Fitch said it expected the Macau government “to take a pragmatic approach” regarding extending the concessions of the city’s current six gaming operators beyond 2022.

“However, there is risk of adverse events or conditions such as a new concessionaire being introduced or new fees, taxes or development requirements being imposed,” it added.

In Monday’s report, Fitch affirmed the issuer default ratings (IDR) of MGM Resorts and MGM China at ‘BB’. The ratings agency added that the outlook for the group is stable.

The report followed MGM Resorts’ announcement earlier this month of a plan to sell for US$825 million of its Circus Circus Las Vegas venue and its decision to “monetise” for US$4.2 billion in cash its interest in Bellagio, another of its properties in the Nevada gaming hub.

MGM Resorts said it plans to use the proceeds to: strengthen its balance sheet; return capital to shareholders; and support its sports betting and Japan development initiatives.

Fitch said MGM Resorts’ liquidity “is solid and is set to improve further” as annual discretionary free-cash-flow “grows in excess of US$1 billion by 2020”. “Per Fitch’s base case, the primary use of the free-cash-flow will be to support continued ramp up in shareholder returns,” it added.


  • tweet
Related articles
  • Casino op SJM 2024 EBITDA to hit US$510mln: Moody’s
    Casino op SJM 2024 EBITDA to hit...

    Mar 22, 2023  

  • Nagasaki says Credit Suisse woes not to impact IR plan
    Nagasaki says Credit Suisse woes not to...

    Mar 20, 2023  

More news
  • Main-building work at Naga 3 begins mid-2023: NagaCorp
    Main-building work at Naga 3 begins...

    Mar 24, 2023  

  • Macau diversification into non-gaming to remain slow: Fitch
    Macau diversification into non-gaming...

    Mar 24, 2023  


Latest News

Main-building work at Naga 3 begins mid-2023: NagaCorp

Main-building work at Naga 3 begins mid-2023: NagaCorp

Mar 24, 2023  

Piling work for Naga 3, an addition to the NagaWorld gaming complex in Cambodia’s capital Phnom Penh, was at “96 percent completion”, said the promoter’s 2022 annual report, issued on...
Read More
Macau diversification into non-gaming to remain slow: Fitch

Macau diversification into non-gaming to remain slow: Fitch

Mar 24, 2023  

Osaka to up ‘gambling addiction’ centres before IR opens

Osaka to up ‘gambling addiction’ centres before IR

Mar 24, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


April 8, 2028

Completion deadline for 'Marina Bay Sands 2.0', as authorised by Singapore’s authorities



Most Popular

  • Sands China woos Singaporeans as Air Macau opens routeSands China woos Singaporeans as Air Macau opens route March 23, 2023
  • Macau diversification into non-gaming to remain slow: FitchMacau diversification into non-gaming to remain slow: Fitch March 24, 2023
  • Main-building work at Naga 3 begins mid-2023: NagaCorpMain-building work at Naga 3 begins mid-2023: NagaCorp March 24, 2023
  • LVS gets 1-year extension for Marina Bay Sands 2.0 startLVS gets 1-year extension for Marina Bay Sands 2.0 start March 24, 2023
  • Universal Ent affiliate to develop land next to Okada ManilaUniversal Ent affiliate to develop land next to Okada Manila March 24, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us