MGM operators announced a delay on China’s MGM Cotai casino and hotel.
China.- Experts estimate a potential loose of profits after MGM China Holdings Ltd revealed that it delayed the opening of the MGM Cotai that was supposed to open in Macau during the fourth quarter of the year to January 29, 2018. The facility has suffered multiple incidents in the last few months.
According to regional bank Morgan Stanley analysts, the company will perceive a down on the estimated profits due to the delay. The brokerage says it has cut its 2017-19 EBITDA estimates for the operator by about 2-4 percent.
“Some of the downside could be compensated by better VIP business,” noted the brokerage, adding that they expect MGM Cotai to start junket VIP business in the second quarter of 2018. “We expect the existing MGM facility to add a new junket before Cotai opening.”
The new opening date was set just before the Chinese New Year, therefore MGM is expecting a good start as the city during that date is typically packed and sees increases in gambling. MGM China said that the delay was due to the Typhoon Hato that hit Macau during the last week of August and destroyed multiple parts of the city. Moreover, after the storm the casino went through a fire that left one of the workers in the hospital. During those two events, the facility was forced to close its doors for a month approximately.