What investors need to know about the Macau casino sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 01 2025
0mins
Should l Buy MGM?
Source: SeekingAlpha
Macau Casino Revenue Decline: Macau's casino sector experienced a 5.6% year-over-year decline in gross gaming revenue (GGR) for January, totaling 18.25 billion patacas ($2.3 billion), marking the second consecutive month of decreasing GGR and falling short of expectations.
Economic Diversification Efforts: The Macau government is focusing on increasing non-gaming revenue to reduce reliance on gambling, aiming for non-gaming industries to represent 60% of GDP by 2028, while casinos are required to invest in non-gaming attractions as part of their concession agreements.
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Analyst Views on MGM
Wall Street analysts forecast MGM stock price to rise
14 Analyst Rating
5 Buy
7 Hold
2 Sell
Hold
Current: 36.360
Low
29.00
Averages
40.31
High
56.00
Current: 36.360
Low
29.00
Averages
40.31
High
56.00
About MGM
MGM Resorts International is a global gaming and entertainment company with national and international locations featuring hotels and casinos, meetings and conference spaces, live and theatrical entertainment experiences, and a range of restaurant, nightlife and retail offerings. The Company’s segments include Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. The Las Vegas Strip Resorts segment consists of Aria, Bellagio, The Cosmopolitan of Las Vegas, MGM Grand Las Vegas, Mandalay Bay, Luxor, New York-New York, Excalibur, and Park MGM. The Regional Operations segment consists of MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica; Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York, and others. MGM Digital is its online gaming portfolio which is primarily comprised of LeoVegas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Announcement: MGM Resorts is set to release its Q4 earnings on February 11 after market close, with consensus EPS estimate at $0.60, reflecting a 33.3% year-over-year increase, which could positively influence investor sentiment.
- Revenue Expectations: The anticipated revenue for Q4 is $4.39 billion, representing a modest 2.1% year-over-year growth, indicating the company's stability and resilience in a competitive market.
- Historical Performance: Over the past two years, MGM has exceeded EPS and revenue estimates 75% of the time, showcasing financial consistency that may bolster investor confidence in future performance.
- Estimate Revisions: In the last three months, EPS estimates saw no upward revisions and six downward adjustments, while revenue estimates experienced two upward and six downward revisions, reflecting a cautious market outlook on MGM's future performance.
See More
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- Five-Star Hotel Honors: MGM Resorts has received 13 Five-Star awards from Forbes Travel Guide across Las Vegas and Macau, with SKYLOFTS at MGM Grand earning the accolade for the 17th consecutive year, highlighting its exceptional standing in the luxury hotel sector.
- Spa Achievements: The Spa at ARIA has maintained its Five-Star status for eight consecutive years, becoming the largest Five-Star spa, demonstrating MGM's ongoing commitment to providing unparalleled luxury experiences.
- Excellence in Dining: MGM Grand's Joël Robuchon restaurant celebrates its 20th consecutive Five-Star rating, indicating its leadership in the fine dining market, while Bellagio's Le Cirque also received the honor for the 10th year, further solidifying brand influence.
- Global Brand Expansion: MGM Resorts operates 31 unique hotel and gaming destinations worldwide and is actively pursuing expansion in Asia through an integrated resort development in Japan, showcasing its ambitious global strategic positioning.
See More
MGM Resorts (MGM) Q4 2025 Earnings Call Transcript
See More
Clairvest Group Reports Q3 2026 Financial Results
- Net Income Growth: For the third quarter ended December 31, 2025, Clairvest Group reported net income of CAD 105.1 million, or CAD 7.65 per share, primarily driven by successful realizations from F12.net and Acera Insurance, showcasing the company's effective investment management.
- Significant Investment Returns: Clairvest and CEP VI sold their interest in F12.net, achieving a 4.6x return on invested capital with proceeds of CAD 164 million, compared to an investment value of CAD 23.2 million, reflecting strong performance in the technology services sector.
- New Acquisition Opportunities: Clairvest entered into an agreement with CEP VII to acquire MGM Northfield Park for USD 546 million, with an expected equity investment of approximately USD 165 million, further expanding its footprint in the regional gaming market and enhancing future revenue potential.
- Share Buyback: During the third quarter, Clairvest repurchased and cancelled 60,500 common shares at a total cost of CAD 4.3 million, increasing the book value per share by CAD 0.09, demonstrating the company's commitment to shareholder returns and proactive capital management.
See More
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- Net Income Growth: For the third quarter ended December 31, 2025, Clairvest Group reported net income of CAD 105.1 million, or CAD 7.65 per share, primarily driven by successful investment realizations in F12.net and Acera Insurance, showcasing the company's effective investment management.
- Significant Investment Returns: Clairvest and Clairvest Equity Partners VI sold their interest in F12.net for CAD 164 million, achieving a 4.6x return on invested capital, which further solidifies their market position in the technology services sector.
- New Business Acquisition: Clairvest and Clairvest Equity Partners VII entered into an agreement to acquire MGM Northfield Park for USD 546 million, with an expected equity investment of approximately USD 165 million, reflecting the company's proactive strategy in business expansion.
- Share Buyback Program: During the third quarter, Clairvest repurchased and canceled 60,500 common shares at a total cost of CAD 4.3 million, enhancing the book value per share by CAD 0.09, indicating a strong commitment to shareholder returns.
See More
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- AGNC Yield Attraction: AGNC boasts an eye-catching forward yield of 12.8%, and while its projected EPS of $1.51 covers the $1.44 dividend, its declining earnings indicate a potential high-yield trap, suggesting caution for investors.
- Cost of Financing Pressure: AGNC generates cash by selling mortgage-backed securities (MBS), but with short-term rates exceeding long-term rates, its financing costs have risen, limiting profitability; if the real estate market remains sluggish, dividend cuts may be on the horizon.
- Vici's Stability: In contrast, Vici Properties, as an equity REIT, owns 93 entertainment properties and has maintained a 100% occupancy rate since its 2018 IPO, with projected adjusted funds from operations expected to grow 4%-5% by 2025, showcasing strong profitability and stable dividend payments.
- Leasing Model Advantage: Vici's leases are tied to the Consumer Price Index, allowing for rent increases in line with inflation, and its triple-net lease structure requires tenants to cover maintenance and taxes, further enhancing financial stability and dividend growth potential.
See More
