Jefferies: Maintaining MGM China's (02282) “Buy” rating, 26Q2 results are in line with expectations

The Zhitong Finance App learned that Jefferies released a research report stating that it maintains MGM China's (02282) “buy” rating. Second-quarter sales and adjusted EBITDA were in line with this forecast, and adjusted EBITDA was 8% higher than market expectations. Adjusted EBITDA for the period was HK$2.33 billion, down 7% year on year and 5% quarterly; revenue was HK$8.6 billion, flat year on year, down 2% quarter over quarter. The market share in the second quarter was 16.4%, down 0.3 percentage points year on year and up 0.5 percentage points from quarter to quarter.

Jefferies quoted management as saying in a conference call that Macau's gaming revenue in June was briefly affected by the World Cup, but it has been seen that demand savings were released one after another. Last week (July 22-26), the average number of daily visitors to MGM properties and normalized gaming revenue surpassed pre-World Cup levels in the first quarter, and the overall Macau market had recovered to close to the level of the first quarter. Management also mentioned that Macau's summer events and concert schedule will provide further support for summer business.