MGM China Holdings Ltd., a leading Macau-based developer, owner and operator of gaming resorts and accommodation in the Greater China region, revealed that is poised to install additional gaming tables and extend its sales and marketing teams at MGM Macau and MGM Cotai during the third quarter in an attempt to attract additional foreign clients to its properties.
In addition, the revelation came Wednesday, August 2nd, during an investor conference call following the release of the second-quarter earnings results from its parent firm, MGM Resorts International. On a related note, MGM Resorts CEO Bill Hornbuckle said during Wednesday’s call: “The group had completed some renovations at both properties in Macau just a few weeks ago. The company plans to complete in the third quarter the deployment optimization of its additional gaming tables.”
A recent increase in the number of gaming tables:
MGM China received a 36% growth in the total number of gaming tables assigned to the company, aka an extra 200 tables, under the latest gaming concession which took effect on January 1st. It also received an official license to manage a total of 1,700 gaming machines and 750 gaming tables.
In this regard, Hornbuckle commented: “There are about 150 in play with 50 more to go. And I think that will help our share story as we get to the second half of the year. In Macau, we are focused in four key priorities: activating our incremental 200 tables; making changes to our casino floor to maximize yield; taking care of our premium-mass customers; and driving international customers to our properties through our global branch office network.”
Planned expansion of sales and marketing teams:
During the said call, the president and chief operating officer of MGM China, Hubert Wang said: “The company was seeking to expand its sales and marketing teams. I think that this is going to be very important for our customer acquisition. We’re going to leverage our network that MGM Resorts has internationally to push the overseas market.”
However, he added: “I think that we have already made a lot of progress, and we’re going to open more offices and double our head count, sales and marketing people in these areas. Capital projects and enhancements to the properties remain a very important element to improve the customers’ experience, particularly at the premium mass side.
“At MGM Macau, we’re going to do a renovation in the coming months and the quarters. And there are also a lot of non-gaming programs and products that we’re going to either renovate or build under the re-tendering concession commitment.”
Growth – as the ultimate goal:
“MGM China’s results in July were very strong,” according to Wang. In this regard, he said: “We are looking at higher numbers than the second quarter. So, I’m very optimistic on the balance of the year in terms of recovery and the financial results. We are already moving beyond recovery; we are talking about growth.”
Commenting on recently revealed measures to possibly extend domestic spending by China’s State Council, he commented: “The stimulation package might be another push for the mass segment, particularly at the mid- to lower-end of mass.” However, he emphasized: “The recovery in the Macau gaming market has so far been driven by the premium-mass segment. But I think the longer-term recovery will be a broad spectrum … the demand will come from every segment of the mass market.”