MGM China to grow in 2019

According to brokerage Nomura, the casino operator will increase its share of the city’s market despite an overal GGR contraction in Macau.

Macau.- A potential contraction of overall gross gaming revenue (GGR) in Macau next year is likely to remain unharmful for MGM China Holdings Ltd. According to Instinet LLC, the research arm of Japanese brokerage Nomura, the casino operator is likely to increase its share of the city’s gaming sector in 2019, regardless of the overall situation.

“Investors should expect MGM Cotai’s ramp to be gradual through 2020,” analysts Harry Curtis, Daniel Adam and Brian Dobson wrote in a Monday note about the firm, which operates the MGM Macau and MGM Cotai. “However, two new junkets opening in the next few weeks and the expected opening of the Mansion [villas] by Chinese New Year (February 5, 2019) should help MGM Resorts International be a share gainer in a declining Macau market next year,” they added.

In addition to an improved performance in Macau, Nomura assessed MGM’s potential in Japan: “Given MGM Resorts’ willingness to partner and its successful track record partnering with third parties such as Pansy Ho [Chiu King] in Macau and Dubai World at CityCenter, we believe MGM Resorts is one of the best-positioned, if not the best-positioned global gaming operator.”