MGM Resorts International will delay the opening of its new facility in Macau due to “market conditions.”
Macau.- MGM Resorts International announced yesterday (Thursday) that the opening of its US$3B Cotai resort would have to be postponed until 2017 due to “market conditions.” Macau’s overall gaming revenue has fallen for 20 straight months and the future does not look promising.
Revenue from MGM Resort’s MGM Macau property experienced a decline of 30.6 percent. A year ago, MGM lost US$287.4 million, 70 cents per share that is. On 2015, net loss reflected a loss per share of US$1.38. For the three months ending Dec. 31, MGM reported revenue decline of 8 percent, a little under US$2.4b. Operating income went from US$266m in the last quarter of 2014 to a US$1.2b loss. Net losses amounted to US$1.47b.
MGM explained there is an additional reason for the decision of postponing Cotai resort’s opening: to prevent clashing with the openings of two other resorts in Macau: Wynn Palace and Parisian Macao, also scheduled in 2016.