MGM China is set to expand its sales team in order to take advantage of recent gains in the Macau market share, according to the company’s President and Chief Operating Officer, Hubert Wang. During a recent earnings call, Wang revealed that the company plans to double the headcount of its international sales and marketing team. This move comes as MGM China exceeded its 2Q19 revenue and EBITDAR levels in the June 2023 quarter.
MGM Resorts CEO and President, Bill Hornbuckle, also commended the marketing team’s efforts following the decline of the Macau junket industry. He highlighted the company’s unique position in shaping its marketing organization around understanding its customers and delivering them to its properties. With the demise of junkets, MGM China has seen its network come into play, and it is now expanding on that network by opening additional offices.
Wang explained that the expansion of the sales team is crucial for customer acquisition and that MGM China will leverage MGM Resorts’ international network to tap into overseas markets. He expressed optimism about the progress already made and stated that more offices will be opened to accommodate the expansion.
The Macau government’s re-tendering process in 2022 emphasized the importance of enhancing international visitation. As part of their 10-year gaming concessions, the six existing concessionaires, including MGM China, have committed to investing over MOP$118 billion (US$14.9 billion) into Macau. This investment includes the development of foreign source markets and non-gaming projects.
Wang also mentioned that capital projects and enhancements are critical for improving the customer experience, particularly in the premium mass segment. For example, MGM Macau will undergo villa renovations in the upcoming months and quarters. The company will also introduce or renovate non-gaming programs and products as part of its re-tendering concession commitment.
MGM China’s strong performance in Q2, along with the successful deployment of gaming tables awarded under its new concession, has provided momentum for the company. Wang highlighted that July results have been robust and showed continued improvement across various key performance indicators.
With a positive outlook for the rest of the year, MGM China aims to defend its market share through various initiatives. The company remains focused on capital projects, customer acquisition, and delivering an exceptional customer experience.
In summary, MGM China’s plan to expand its sales team reflects its commitment to capitalizing on recent market share gains in Macau. By leveraging MGM Resorts’ international network and investing in capital projects, the company aims to enhance the customer experience and attract visitors from overseas markets. With strong performance in Q2 and positive indicators in July, MGM China is optimistic about its recovery and future prospects.
