Quarterly report from American operator reveals joint venture receiving eight percent of market share.
Wednesday 21st May 2008
Las Vegas-based casino operator MGM Mirage has announced that its Macau venue is under-performing and that it needs to increase its marketing efforts in Mainland China.
The Nevada firm holds a 50 percent stake in the MGM Grand Macau with the revelation coming in its quarterly report in which it reported a 30 percent drop in total profits due to a fall in revenues as well as the temporary closure of its Monte Carlo resort.
MGM stated that its Macau property generated net revenues of around $298 million for the three-month period alongside property earnings before interest, tax, depreciation and amortization of $43 million.
“We are generally pleased with the resort’s performance thus far but clearly know that we have several areas to improve on going forward,” said Terry Lanni, Chairman and Chief Executive Officer for MGM.
“We expect margins will improve at this joint venture as it grows in this dynamic marketplace and remain focused on improving results in all operating segments.”
In contrast, the Wynn Macau reported property earnings of $129,395 for the quarter while Las Vegas Sands Corporation’s Sands Macao revealed a figure of $65,618.
MGM stated that the venue was not meeting expectations because it holds approximately nine percent of the gaming capacity in the former Portuguese colony but reported a market share of approximately eight percent
“Frankly, since opening we are running about just under eight percent of market share so we are below our capacity in market share,” said Lanni.
Lanni stated that MGM would be increasing its marketing efforts in China in order to draw more tourists and lift the performance of its mass-market gaming tables and slot machines.
“You are able to advertise non-gaming aspects in a judicious matter in the People’s Republic of China and that’s something we had failed to do and it is something we are now addressing,” said Lanni.
Las Vegas-based casino operator MGM Mirage has announced that its Macau venue is under-performing and that it needs to increase its marketing efforts in Mainland China.