Analyst Note| Jennifer Song |
In line with its Macao gaming peers, MGM China posted sluggish third-quarter results on limited market activity. Net revenue fell 7.1% quarter on quarter to USD 289 million, and adjusted EBITDA declined 18.5% quarter on quarter to USD 7 million, due to tightened COVID-19 restrictions in Macao. And MGM China’s focus on the premium mass segment has seen the company gain market share to 13.8% of total gross gaming revenue, or GGR, in Macao, up from 11.2% in prior quarter. The results were largely within expectations, and we maintain our fair value estimate of HKD 8.60 per share for MGM China. We think the shares are undervalued.