Deutsche Bank has lowered its 2024 EBITDAR forecast by 4 per cent.<\/p>\n\n\n\n\n\n\n\n
Macau.- Deutsche Bank<\/strong> has adjusted its 2024 EBITDAR forecast for MGM China making a 4 per cent reduction compared to their previous estimate.\u00a0The revision comes in response to the perceived deceleration in the market’s recovery.<\/p>\n\n\n\n Deutsche Bank issued an investment memorandum ahead of MGM Resorts’ third-quarter earnings announcement, scheduled for November 8. The bank’s analysts anticipate a “modest margin improvement” for the quarter.<\/p>\n\n\n\n For the second quarter of 2023,\u00a0MGM China posted a net revenue of US$741m<\/a>, up 4.9 per cent when compared to the second quarter of 2019 and up 20 per cent\u00a0in quarter-on-quarter terms<\/a>. The casino operator reported positive adjusted EBITDA of HK$1.75bn (US$223.9m), up 19.8 per cent compared to the second quarter of 2019 and 24.1 per cent from the preceding quarter.<\/p>\n\n\n\n MGM’s management has outlined four key priorities to sustain market share gains: activating an additional 200 tables, renovating the casino floor, introducing more mass and premium mass-focused tables and implementing direct marketing strategies.<\/p>\n\n\n\n According to Deutsche Bank, MGM China’s profit margins are anticipated to expand gradually on a quarter-to-quarter basis due to an increased proportion of mass revenue across the market.\u00a0The bank’s report highlighted that during the second quarter of 2023, MGM China may have benefited from a higher-than-average VIP hold, resulting in an estimated EBITDA benefit of US$3-4m. <\/p>\n","protected":false},"excerpt":{"rendered":" Deutsche Bank has lowered its 2024 EBITDAR forecast by 4 per cent.<\/p>\n","protected":false},"author":176,"featured_media":17390,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Deutsche Bank has adjusted its 2024 EBITDAR forecast for MGM China downwards by 4%, citing a deceleration in Macau's market recovery. Despite this, MGM China reported robust Q2 2023 net revenue and adjusted EBITDA, with management outlining strategic priorities focused on enhancing mass and premium mass gaming verticals and direct marketing to sustain market share gains. Analysts anticipate gradual margin expansion, though Q2 benefited from a higher VIP hold.","focusai_entities":"Deutsche Bank, MGM China, MGM Resorts","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), compliance_legal (0.7), operator_casino (1.0), product_ux (0.7), marketing_crm (0.8), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Macau Market Recovery","query":"What specific macroeconomic indicators or competitive dynamics are driving Deutsche Bank's revised outlook on Macau's market recovery deceleration, and how might this impact other concessionaires' GGR forecasts and capital expenditure plans?"},{"label":"MGM China Strategy Efficacy","query":"How do MGM China's outlined strategies\u2014specifically activating 200 tables and increasing mass\/premium mass focus within specific gaming verticals\u2014align with broader market trends in Macau, and what is the projected NGR contribution from these initiatives?"}],"footnotes":""},"categories":[16338,163],"tags":[1618],"class_list":["post-777010351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-east-asia-news","category-finance-news","tag-mgm-china"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777010351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777010351"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777010351\/revisions"}],"predecessor-version":[{"id":777041106,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777010351\/revisions\/777041106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/17390"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777010351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777010351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777010351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}