Despite a slower recovery, MGM Resorts’ CEO believes Macau\u2019s market is in good shape.<\/p>\n\n\n\n\n\n\n\n
Macau.- Although Macau has started to show some signs of recovery<\/strong>, especially after the Labour Day break<\/a>, it is still far from pre-pandemic levels.<\/p>\n\n\n\n Bill Hornbuckle<\/strong>, MGM Resorts International president and CEO, has recognised that the recovery “is more disappointing than other places such as Las Vegas.”<\/strong><\/p>\n\n\n\n However, Hornbuckle is confident\u00a0Macau’s economy will improve in the next few months<\/strong>. Speaking at the Alliance Bernstein 37th Annual Strategic Decisions Conference, he said: \u201cWe\u2019ll see ebbing and flowing over the next couple of quarters.<\/p>\n\n\n\n “I can\u2019t imagine as they continue to get jabs into their arms<\/strong>, albeit slower than the US, that we\u2019re not going to return to a new norm.\u201d<\/p>\n\n\n\n Hornbuckle also referred to the\u00a0rise in Covid-19 cases in Guangdong<\/strong>\u00a0and its link to a possible drop in the GGR. he praised how local authorities had reacted “harshly and strongly\u201d\u00a0<\/strong>to tackle the outbreak.<\/p>\n\n\n\n When talking about the mass-market gambling business,\u00a0Hornbuckle said it had returned to 60 per cent<\/strong>\u00a0of pre-pandemic levels. He added that MGM China increased its market share of in-house VIP.<\/p>\n\n\n\n Hornbuckle said: \u201cIt\u2019s really because as the market shifts away from junket to in-house VIP, we\u2019ve been ideally structured over many decades in Asia for a branch system\u2026 to ultimately\u00a0be able to market to those customers\u00a0<\/strong>and bring them into the property.\u201d<\/p>\n\n\n\n MGM China<\/a> reported that revenue for the first quarter of 2021 reached HKD2.30bn (US$296.4m), with EBITDA of HK$84.3m (US$10.8m).<\/p>\n\n\n\n According to the financial report, total revenue for the period was HKD2.30bn (US$296.4m)<\/strong>, supported by growth in the mass-market segment.<\/p>\n\n\n\n MGM China reported a\u00a0second consecutive quarter of positive EBITDA<\/a>\u00a0at HK$84.3m (US$10.8m). However, EBITDA was down 88 per cent when compared to the previous quarter.<\/p>\n\n\n\n MGM Macau<\/strong> recorded an occupancy rate of 81 per cent<\/strong> and revenue of HK$1.3bn, while MGM Cotai<\/strong> reached an occupancy rate of 47 per cent <\/strong>and reported revenue of HK$981m.<\/p>\n\n\n\n Moody\u2019s Investor Service<\/a> has said that it believes Macau\u2019s economy could rebound <\/strong>to pre-Covid-19 levels by 2024<\/strong>.<\/p>\n\n\n\n Analysts said that although the special administrative region\u2019s (SAR) economy has been seriously hit<\/strong> by the Covid-19 pandemic, Macau maintains strong sovereign finances.<\/p>\n\n\n\n Moody\u2019s has given Macau an Aa3 rating<\/strong>, which means it is subject to very low credit risk<\/strong>. It said: \u201cThe growth volatility of Macau\u2019s economy is among the highest of all rated sovereigns.<\/p>\n\n\n\n \u201cBut despite the highly volatile nature of economic growth, Macao\u2019s vast fiscal and external reserves \u2014 significantly stronger than those of similarly rated peers<\/strong> \u2014 and very high per capita incomes continue to support its credit profile.\u201d<\/p>\n\n\n\nWhen will Macau’s economy start to recover?<\/h2>\n\n\n\n