MGM China posts strong October after record quarterly market share

MGM China Holdings Ltd recorded strong operating performance in October after posting record quarterly revenue and market share for the period through September, company executives at parent MGM Resorts International said on the third-quarter earnings call. In September MGM China’s market share in Macau reached 19.2%, lifting third-quarter share to a record 17.1%.

Results and market share

Bill Hornbuckle, chief executive officer and president of MGM Resorts International, reported that MGM China’s market share hit 19.2% in September and 17.1% for the third quarter. On the call he said:

“These trends have continued into the fourth quarter with strong October performance thus far,”

and added:

“While the [Macau] market remains competitive, we are focused on our operations, and the execution is paying off.”

Hornbuckle stressed the continuation of solid performance in October and attributed the results to the group’s operational execution.

Demand and product in Macau

Jonathan Halkyard, chief financial officer of MGM Resorts, said that during the October Golden Week visitor volumes at MGM’s two Macau properties — MGM Macau on the peninsula and MGM Cotai on Cotai — rose by 10% year-on-year. He commented that “Premium mass continues to drive growth,” and that customers have responded well to refreshed spaces and products.

Hornbuckle pointed to concrete effects from renovations at MGM Cotai: the overhaul of the Supreme Club produced “longer playing times and higher playing levels” among high-end customers. He also noted that a high-limit slots area opened in July is “attracting more rated players and driving higher slot volumes.”

Margins, revenue and EBITDA

MGM China management cited a quarterly margin of approximately 26.9% and maintained its target margin range in the high-20s percent band. Halkyard reported that MGM China’s quarterly revenue grew 5% year-on-year while reported EBITDA fell by US$20 million. The increase in the brand fee payable to MGM Resorts was US$22 million, and Halkyard said margins are consistent once that fee is considered:

“Margins were consistent when taking this brand fee into account,”

the CFO said.

Management explained that premium-mass customer acquisition is driven more by product, service, innovation and operating efficiency than by elevated promotional spend.

Progress on MGM Osaka and financing

On Japan, Hornbuckle said that MGM Osaka is about 11% complete and “remained on schedule and on budget” for an opening in 2030. He indicated that roughly 70% of the foundation piles were finished and that concrete and steel fabrication work is progressing.

MGM Resorts International and Orix Corp are the lead partners on the MGM Osaka project, valued at JPY1.51 trillion (US$9.56 billion) as Japan’s first integrated resort with a casino, alongside other minority investors. Halkyard said MGM Resorts has spent approximately JPY114 billion on the project to date and expects to contribute between JPY150 billion and JPY160 billion (approximately US$1 billion) in each of 2027 and 2028 to complete its funding commitment. Those contributions will be financed mainly with available cash and free cash flow, although the company will consider yen-denominated debt after arranging committed bank facilities. For details on industry implications see [our B2B coverage](/b2b).

Halkyard described MGM Osaka as financed overall through MGM Resorts’ and Orix’s commitments plus a senior credit facility in Japan, and estimated the project could open at around 2.0 times leverage, enabling refinancing at or soon after opening. The CFO acknowledged that the planned contributions to Japan would somewhat constrain MGM Resorts’ share-repurchase capacity over the next two years, but reiterated that the group’s two top capital-allocation priorities are the investment in Japan and share buybacks.