MGM China has described its Macau promotional and reinvestment strategy as a “package” approach aimed at optimizing the yield of every square foot of its casino floors.
The question of player reinvestment was raised again during MGM’s second-quarter earnings call on Thursday morning after the group’s Macau entity saw margins compress to 23.3% from 27.1% a year ago, impacted by a much higher branding fee charged by parent MGM Resorts. Macau revenues were flat year-on-year.
In response, MGM China CEO Kenneth Feng said Macau would continue to be a competitive market but expressed his belief that MGM continues to showcase a deeper understanding of its customers’ expectations.
