MGM Resorts International has pushed back the debut of MGM Cotai for a second time.
In a financial filing the company cited complexities in the design of the US$3.1 billion, 1,500-room hotel casino for its decision to move the opening from the second quarter to the second half of 2017. Sources tell GGBNews that the company plans to open the Cotai project in August.
A year ago, the opening was rescheduled to early 2017 because of the downturn in Macau’s gaming market. Since then, gaming revenue has enjoyed five consecutive months of year-on-year growth.
The investment firm of Telsey Advisory Group characterized the latest delay as “likely a strategic positive, in that a later opening should meet a stronger market and more competitive landscape”.
The firm had projected the resort, operated by MGM’s majority-held, Hong Kong-listed MGM China Holdings, to generate $154 million in 2017 EBITDA based on an April 1 opening.
“The announcement does not alter our positive thesis given the overall positive earnings momentum and relatively attractive valuation,” Telsey said. “Thus, we reiterate our positive stance on the shares and recommend buying on weakness.”
