Citi has released a research report indicating that MGM CHINA (02282) recorded a 7% year-on-year decline in second-quarter property EBITDA, with a 5% sequential drop. These figures were 3% and 1% above the bank's and market expectations, respectively. Net revenue remained roughly flat compared to the same period last year.
The report highlights that MGM CHINA's management is confident in maintaining property EBITDA margins at the mid-to-high 20% level. It also noted that gross gaming revenue began to recover in the second week of July, when only a few matches remained in the World Cup.
Citi maintains its "Buy" rating on the company, with a target price of HK$13.7.
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