{"id":133450,"date":"2020-04-19T04:30:59","date_gmt":"2020-04-19T11:30:59","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=133450"},"modified":"2020-04-19T12:07:03","modified_gmt":"2020-04-19T19:07:03","slug":"mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/","title":{"rendered":"MGM China Has Resources to Last 15 Months, Don’t Bet on Parent Selling Stake, Say Analysts"},"content":{"rendered":"

MGM China, the Macau gaming business majority owned by MGM Resorts International (NYSE:MGM), has the financial resources to survive up to 15 months if scant visitation to the Special Administrative Region (SAR) lingers. But don’t bet on the parent company selling its stake in the business to shore up its own balance sheet, say analysts.<\/p>\n

\"MGM
MGM China has the cash to survive 15 months if Macau casinos close again. (Image: South China Morning Post)<\/figcaption><\/figure>\n

The operator of the MGM Cotai and MGM Macau has $387 million in cash on hand and access to a bank line of credit worth $580 million, giving it the liquidity to survive six to 15 months, according to Bernstein analysts.<\/p>\n

\n

That assumes a worst-case scenario of another shutdown of Macau casinos, a concept the government there is reluctant to embrace<\/a>. Gross gaming revenue (GGR) and visits to the peninsula haven’t come anywhere close to recovering following a 15-day closure in February forced by the coronavirus outbreak.<\/p>\n<\/div>\n

Bernstein estimates that in a shutdown scenario, MGM China would burn $2.07 million per day, which is in line with what some comparable operators said they were blowing through during the February closure. Analysts are saying that this year, Macau concessionaires need daily revenue of almost <\/a>$38.20 million to break even on an earnings before interest, taxes, depreciation and amortization (EBITDA) basis, a market that isn’t close to being achieved.<\/p>\n

Don’t Bet on a Sale<\/h2>\n

Las Vegas-based MGM owns nearly 56 percent of the China unit, something the company hasn’t been shy about advertising when highlighting its financial strength<\/a> in the wake of the COVID-19 pandemic. However, analysts believe it’s unlikely the parent company will look to reduce or liquidate that stake.<\/p>\n

There are a whole host of issues with trying to divest MGM China, including finding a buyer that the Macau government would agree to (not a very easy foray) and also dealing with MGM\u2019s partner, Pansy Ho, who would not necessarily look favorably at a new partner,\u201d said Bernstein.<\/p><\/blockquote>\n

Ho is also a major MGM shareholder, though she dramatically reduced<\/a> her stake in the Mirage operator in two sales announced last November and December. The stock is down nearly 58 percent year-to-date and resides 59.35 percent below its 52-week high.<\/p>\n

Tolerable Debt<\/h2>\n

MGM China has a net leverage ratio of 2.9x trailing 12-month earnings before interest, taxes, depreciation and amortization (EBITDA), which Bernstein views as palatable. Like some other Macau operators, the company recently was granted some breathing room by creditors, landing some covenant waiver extensions on bank loans.<\/p>\n

\u201cLiquidity concerns are not a near-term issue even in a near zero-revenue environment,\u201d said Bernstein of MGM China.<\/strong><\/p>\n

Macau gaming venues are open. But visits remain scant because of strict travel controls imposed to stem the spread of the coronavirus. Mainland China and Hong Kong \u2013 two vital arteries for gamblers seeking entry into Macau \u2013 continue limiting travel to the gaming hub, punishing GGR in the process. Analysts are speculating that those restrictions will be lifted in June and that gaming revenue could rebound in the fourth quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"

MGM China, the Macau gaming business majority owned by MGM Resorts International (NYSE:MGM), has the financial resources to survive up to 15 months if scant visitation to the Special Administrative Region (SAR) lingers. But don’t bet on the parent company selling its stake in the business to shore up its own balance sheet, say analysts. […]<\/p>\n","protected":false},"author":46,"featured_media":133452,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[],"acf":[],"yoast_head":"\nMGM China Has Cash to Survive 15 Months if Another Shutdown Occurs<\/title>\n<meta name=\"description\" content=\"MGM China has the liquidity to surive up to 15 months if another Macau shutdown occurs, but analysts don't see a sale by MGM as likely.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MGM China Has Cash to Survive 15 Months if Another Shutdown Occurs\" \/>\n<meta property=\"og:description\" content=\"MGM China has the liquidity to surive up to 15 months if another Macau shutdown occurs, but analysts don't see a sale by MGM as likely.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-19T11:30:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-19T19:07:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/mgmc.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1620\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/\",\"url\":\"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/\",\"name\":\"MGM China Has Cash to Survive 15 Months if Another Shutdown Occurs\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/mgmc.jpg\",\"datePublished\":\"2020-04-19T11:30:59+00:00\",\"dateModified\":\"2020-04-19T19:07:03+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"MGM China has the liquidity to surive up to 15 months if another Macau shutdown occurs, but analysts don't see a sale by MGM as likely.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/mgmc.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/mgmc.jpg\",\"width\":1620,\"height\":1080,\"caption\":\"MGM China has the cash to survive 15 months if Macau casinos close again. (Image: South China Morning Post)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Asia Pacific Gaming\",\"item\":\"https:\/\/www.casino.org\/news\/asia-pacific-gaming\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"MGM China Has Resources to Last 15 Months, Don’t Bet on Parent Selling Stake, Say Analysts\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"MGM China Has Cash to Survive 15 Months if Another Shutdown Occurs","description":"MGM China has the liquidity to surive up to 15 months if another Macau shutdown occurs, but analysts don't see a sale by MGM as likely.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/","og_locale":"en_US","og_type":"article","og_title":"MGM China Has Cash to Survive 15 Months if Another Shutdown Occurs","og_description":"MGM China has the liquidity to surive up to 15 months if another Macau shutdown occurs, but analysts don't see a sale by MGM as likely.","og_url":"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2020-04-19T11:30:59+00:00","article_modified_time":"2020-04-19T19:07:03+00:00","og_image":[{"width":1620,"height":1080,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/mgmc.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/","url":"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/","name":"MGM China Has Cash to Survive 15 Months if Another Shutdown Occurs","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/mgmc.jpg","datePublished":"2020-04-19T11:30:59+00:00","dateModified":"2020-04-19T19:07:03+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"MGM China has the liquidity to surive up to 15 months if another Macau shutdown occurs, but analysts don't see a sale by MGM as likely.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/mgmc.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/mgmc.jpg","width":1620,"height":1080,"caption":"MGM China has the cash to survive 15 months if Macau casinos close again. (Image: South China Morning Post)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/mgm-china-has-cash-to-survive-15-months-if-another-shutdown-occurs\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Asia Pacific Gaming","item":"https:\/\/www.casino.org\/news\/asia-pacific-gaming\/"},{"@type":"ListItem","position":3,"name":"MGM China Has Resources to Last 15 Months, Don’t Bet on Parent Selling Stake, Say Analysts"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/133450"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=133450"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/133450\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/133452"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=133450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=133450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=133450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}