MGM Resorts recorded its highest-ever net revenues, securing records in its regional revenues and Asian EBITDAR, with only a downturn in Las Vegas holding it back.
Visitors to Las Vegas fell by 11.3 per cent in June, but Bill Hornbuckle, Chief Executive Officer & President of MGM Resorts, believes form is temporary, class is permanent.
“History gives us confidence,” Hornbuckle said. “Starting in May, we saw about nine weeks of declines in bookings, but now over the last month, those bookings have increased. For the last four weeks in a row, we’ve seen an increase and so that gives us confidence as we think about August, September and into October.”
In Las Vegas, revenues skid to $2.1bn in the current quarter compared to $2.2bn in the prior year quarter, a decrease of four per cent due, primarily, to the impact from the room remodel and a decline in table games hold at MGM Grand Las Vegas.
“Las Vegas remains fundamentally solid,” Mr Hornbuckle added. “We saw a record 2Q table games volume and record slot volumes at our ultra luxury properties. This quarter’s adjusted EBITDAR decline was in fact isolated from two specific factors. One, the MGM Grand accounted for over 80 per cent of the decline, where results were impacted by a uniquely disruptive room remodel and severely abnormal hold and midweek weakness at two of our value-oriented properties.”
Jonathan Houthyard, Chief Financial Officer and Treasurer, MGM Resorts International, added: “During the second quarter and now into July, performance on the weekends has been solid as we’ve been operating near capacity in our hotels across the spectrum. Our luxury offerings in Vegas maintained rate integrity with slot and table volume increasing about four per cent and several properties reporting second quarter records for net revenue. The year-over-year, adjusted EBITDAR decline in Las Vegas of $72,000,000 was primarily confined to the MGM Grand and to a much lesser degree midweek performance at the Luxor and Excalibur.
“The MGM Grand represented $60m of the difference, with the vast majority due to impacts from the room remodel and hold. When you exclude the impact of the MGM Grand property on our results, Las Vegas adjusted EBITDAR decreased about two per cent in the second quarter. The lower midweek visitation in our more value oriented properties has continued in July, though we’re taking advantage of this dynamic by pulling forward the MGM Grand Room Remodel timeline. Based on this accelerated timeline, we now expect the remodel to be completed by October, which will allow us to capitalize on these refresh rooms in November in time for F1’s return to Las Vegas and for the holiday season. When you also consider, we’ve seen positive bookings in three of the last four weeks and solid bookings of groups and conventions that are in place for later in the year, we’re optimistic about restoring a growth trajectory in Las Vegas during the fourth quarter that will carry on into 2026.
Elsewhere, MGM China achieved all-time record Segment Adjusted EBITDAR and market share of 16.6 per cent whilst BetMGM continued to accelerate in North America.
Mr Houthyard said: “BetMGM North America venture continued its momentum into the second quarter with revenue from operations up 36 per cent, resulting in second quarter EBITDA of $86m. iGaming grew 29 per cent in the second quarter despite no new state launches, driven by strong player acquisition at attractive payback economics and healthy engagement activity. Sports betting top line grew 56 per cent in the quarter, benefiting from the repositioning toward the premium mass customer, as well as targeted marketing and refined player segmentation efforts. Omnichannel efforts also continue to gain momentum. Our March Madness activations fueled a record number of Nevada first-time depositors, while the single-app, single-wallet feature helped drive 30 per cent growth in Nevada monthly actives.”
The aim for the operator is clear.
Mr Hornbuckle added: “Our vision is to be the world’s premier gaming entertainment company. Pursuing that vision is paying significant dividends as we generate revenues in multiple streams across the globe. The benefits of having a global presence in both the brick and mortar and digital domains drove a record highest ever consolidated net revenue results this quarter.
“You’re seeing the power of our portfolio diversity strategy on full display this quarter. We’ve accelerated digital growth, combined with record-setting results in China and in our regional properties, more than offset a choppy period in Las Vegas. We recognize that the substantial share buybacks completed in recent years must be coupled with an active growth pipeline to fully unlock the company’s value. In 2Q, our diversity is proving to be the bridge uniting the benefits of a lower share count and growth. We are positioned to kick off and unleash significant value with notable near-term catalysts in BetMGM and Las Vegas and mid to long-term catalysts in MDM Digital and our development projects, both domestic and international.”
“Our outlook on the business remains bright, particularly in Las Vegas as 4Q25 and full year 2026 will benefit from meaningful capital investment, including the completion of the MGM Grand room remodel, combined with strong convention bookings. Looking beyond 2025, our BetMGM venture continues towards its goal of $500m in EBITDA and our MGM Digital segment is on target to become profitable in the coming years.”
Las Vegas also recently celebrated the groundbreaking of the new $1.8bn MLB stadium at the former site of Tropicana, which is expected to bring 400,000 new visitors annually to Las Vegas. This puts the NFL, the NHL and MLB home venues, which also host a significant number of other sports and entertainment events, all within one mile of each other.
“The resulting Golden Triangle will be surrounded by MGM properties. And importantly, the Dome Stadium will bring meaningful game and entertainment inventory during the summer midweek periods, which will increase the value of rooms during that period,” Mr Hornbuckle added.
The post MGM records its best ever revenues despite temporary Las Vegas lag appeared first on G3 Newswire.
MGM Resorts recorded its highest-ever net revenues, securing records in its regional revenues and Asian EBITDAR, with only a downturn in Las Vegas holding it back. Visitors to Las Vegas fell by 11.3 per cent in June, but Bill Hornbuckle, Chief Executive Officer & President of MGM Resorts, believes form is temporary, class is permanent….
The post MGM records its best ever revenues despite temporary Las Vegas lag appeared first on G3 Newswire.