MGM Can Win New Market Share In Macau, Says Bank

Must read

[ad_1]

Posted on: March 6, 2023, 12:48h. 

Last updated on: March 6, 2023, 01:53h.

MGM China can pilfer market share from rivals in Macau on the back of the special administrative region’s (SAR) altered guidelines about table games allotment.

MGM Macau
The MGM Grand in Macau, seen above. Morgan Stanley sees the operator winning market share there. (Image: CNBC)

Under Macau’s recently revised gaming laws, concessionaires face limits on how many slot machines and table games they can offer at each venue. However, some operators, such as MGM China, can add table games because they were operating below the new limits before the regulations were passed.

Under the new guidelines, regulators limit slots to 12K devices across Macau casinos and 6,000 table games. While those figures align with the levels seen at the end of the second quarter, they’re markedly below those seen before the coronavirus pandemic. In 2019, there were more than 17K gaming machines at Macau gaming venues and 6,739 table games.

Morgan Stanley estimates the MGM Cotai operator has added 197 table games since late 2019 through the start of this year. The company’s other venue in the SAR is MGM Grand Macau.

“We see [MGM China’s] market share in terms of number of gaming tables increasing from 8% in 2019 to 13% in 2023,” according to the bank. “We believe MGM mass market share will increase from 10% in 2019 to 13% in 2024.”

MGM China’s 750 table games across its two Macau venues ties it with rival Melco Resorts on that metric and places it ahead of some competitors, including Wynn Macau. MGM Resorts International (NYSE: MGM) owns 56% of MGM China.

MGM China Compelling Investment Idea

Based on the potential to wrest market share from competitors, MGM China is an attractive investment idea in the eyes of Morgan Stanley.

Enhancing the stock’s allure is that the admission cost is low when measured against some Macau competitors. Plus, even with recent strength in the group, there’s still room for Macau casino stocks to appreciate because the shares dwell below pre-coronavirus highs.

MGM China’s “valuation at 8.8x EV/EBITDA on our 2024 forecast is a 35% discount to its long-term average multiple since 2012. We view this valuation level as attractive,” added Morgan Stanley.

Commanding additional attention from mass-market visitors could be pivotal for MGM China because mass and premium mass bettors are driving more of Macau’s recovery than VIPs.

Other MGM China Perks

MGM China’s debt-to-earnings before interest, taxes, depreciation and amortization (EBITDA) is on the higher end of its peer group. But Morgan Stanley believes that’s not a major cause for concern due to the strong cash position of parent MGM Resorts.

The Las Vegas-based operator recently forecasted it could spend up to $150 million this year enhancing its two Macau venues. That’s part of broader expenditures required by Macau law due to the recently renewed concessions.

[ad_2]

Source link

More articles

- Advertisement -spot_img

Latest article

kemampuan spesial putaran ajaib slot mahjong ways 1 langsung cuan maksimalteknik keramat slot mahjong ways 2 auto turun scatter berlimpahslot jackpot unlimited paling di cari memberslot sugar rush 1000 mudah jackpot besartrik menangkan jackpot pakai strategi inirahasia mengalahkan mesin slot onlinertp dan volatilitas slot pragmatic gates of olympus hari inicara kerja fitur free spin pada slot gates of olympusakun vip mesin slot kakek zeus mudah dapat x500 tiap spincara menang slot sensasional hanya modal receh khusus slot olympusslot unlimited scatter tanpa batas game slot olympus 1000 terbarulink slot gacor terbaru saat inislot demo x500 mesin slot gate of gatotkaca hokiakun pro server jepang jaminan sensa slot olympus x500slot pasti menang dijamin perkalian besar pasti muncul gacor bangetslot anti kalah prediksi admin indra kenzrahasia bocoran dari ahli slot starlight princessstrategi meraih kemenangan besar sweet bonanza x100mengenal simbol penting pada slot gates of olympusfitur multiplikator dari slot gates of olympus yang harus kamu taucara jitu melipat gandakan kemenangan bermain slot onlineslot mahjong ways 2 scatter hitam membararahasia mengalahkan kunci admin mesin slot olympuspanduan lengkap cara mudah jp slot mahjong waysslot maxwin pasti jackpotpola hoki slot super mahjong ways 2 jaminan maxwin sekali spintrik ledakan bom besar x100 sweet bonanzacara mudah munculkan fitur slot scatter hitam kemenangan maksimalcara jitu mengalahkan bandar judi online dengan main slot pragmatic playsistem kemenangan besar 100 juta main slot mahjong ways banjir wild terbanyakcara menjadi sultan dalam sekejap bermain slot mahjong ways2rahasia gacor link maxwin terbaru pgsoftmain slot online dengan pola hoki dijamin maxwinslot mahjong lagi bagi bagi jackpot tanpa batas hanya butuh modal recehkunci kemenangan slot mahjong waysrahasia jam gacor gampang jackpot slot mahjong pandakumpulan slot gacor terbaru 2024sistem spin ajaib slot mahjong ways 1 gampang kasi kemenangan instantcheat gacor slot onlineslot scatter hitam menggila langsung menang 100 jutaslot rave party fever menang maxwin dengan trik bocoran ampuhpola jitu main ikan gampang menang slot koi gate habanerodaftar slot paling jitu memberikan kemenangan kepada member barubocoran pola sakti slot gates of olympuscara mendapatkan perkalian tidak wajar slot mahjong waysbocoran terbaru ahli bermain slot onlinealasan mengapa slot pragmatic gates of olympus begitu populerbocoran pola slot gates of olympus yang pasti slot hokibermain slot pragmatic gates of olympus dengan modal minimtrik main slot jackpot modal recehbocoran akurat sekali spin slot mahjong ways superbanjir kemenangan konsisten slot mahjong tanpa ampun kasi jackpotcara terbaik memaksimalkan kemenangan bermain slot mahjong ways 2admin putri bagi bagi akun sakti khusus slot pragmatic playpenemuan jam hoki slot gacorcara bermain slot gacor dengan langkah ajaib dari admin stevenulasan mendalam starlight princess x1000 menurut para ahliperbandingan slot starlight princess dengan slot lainnya di tahun 2024keistimewaan akun vip di slot online server thailandstrategi terbaik untuk menang di slot starlight princess dari pragmatic playfakta bocoran pola scatter dari negeri para princessgrebek situs pola gacor zeus untuk turunkan scatterketimpa scatter x1000 membuat bandar mahjong ways gulung tikarkumpulan naga hitam memecahkan pola gacor di mahjong wayslari bersama kakek zeus mengejar maxwin x1000mandi jackpot bareng di situs gacor anti rungkad bonanzapeluang kemudahan mencuri pola kakek merah zeusspenjual rujak memberi pola buah untuk mendapatkan jackpot di bonanzaresiko jadi admin slot dapat memecahkan pola gacor mahjong ways2seorang pria muda di temukan sukses berkat pola gacor princessnya