MGM Resorts CFO speaks at Deutsche Bank Annual Leveraged Finance Conference

Jonathan Halkyard hailed MGM China’s performance.

Macau.- Jonathan Halkyard, the chief financial officer (CFO) of MGM Resorts International, has hailed the company’s performance in Macau. Speaking at the Deutsche Bank 32nd Annual Leveraged Finance Conference on Tuesday (September 24), he said that despite having only 12.5 per cent of the gaming tables and less than 10 per cent of the suites, MGM China has consistently maintained a market share in the mid-teens.

Halkyard said he had “not seen any real uptick in promotional activities in Macau, nor have we engaged in other than what I consider to be some pretty smart moves by our local management team there to introduce offers and products that our customers really like that are not particularly expensive but keep them visiting our properties.”

As for the company’s integrated resort (IR) in Osaka, Japan, Halkyard said it would break ground next May, although work has already commenced. He emphasised the importance of Expo 2025 on Yumeshima Island as it will provide infrastructure for the IR in terms of transportation and site improvements.

The IR is expected to cost JPY1.27tn (US$ 8.9bn) and is anticipated to generate annual revenue of JPY520bn, of which about 80 per cent is expected to come from the casino. It will also include hotels, shopping areas, convention areas and facilities. Operations are slated to commence by autumn 2030. Halkyard noted that the group completed a billion-dollar bank financing in March. He said equity investments have already begun with almost US$200m this year.

See also: MGM-led consortium waives option to withdraw from Osaka IR development deal

MGM China reported in August that its first-half adjusted EBITDA margin reached a record high of 30.5 per cent, compared to 29.7 per cent for the same period in 2023 and 27.2 per cent in 2019. Its market share of GGR in Macau increased from 14.9 per cent to 16.5 per cent in year-on-year terms.