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MGM Resorts reported higher Q1 revenue, helped by Macau strength and faster digital growth, even as profit and adjusted EBITDAR moved lower across most of the business.
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MGM Resorts had revenue growth in every main segment during Q1, but only digital improved from an adjusted EBITDAR loss view. The group reported $4.5 billion in net revenue, while adjusted EBITDAR fell to $580 million and net income slipped to $125 million.
Macau gave MGM one of its better results. MGM China revenue rose 9% to $1.1 billion during a quarter that included Chinese New Year. Table games win in Macau topped $1 billion, up 18% from last year. Adjusted EBITDAR still fell 4% to $273 million.
Bill Hornbuckle, CEO of MGM Resorts, said: “It’s always difficult to say Macau is ‘stable’, but I feel good about it, I feel very good about our market position and what we’re doing and how we’re doing it.”
He also said MGM remains “under-suited” in Macau and plans to add more hotel capacity.
Digital moved in the right direction too. Revenue from LeoVegas, not BetMGM, rose 43% to $183 million. The digital adjusted EBITDAR loss narrowed from $34 million to $26 million. MGM still expects that loss to keep shrinking, though Brazil tax and regulatory changes may add extra cost.
Gary Fritz, MGM Chief Commercial Officer and president of digital, said: “We’ve indicated in that past that we would see the loss this year for the digital segment halving relative to last year, we might see a little bit more investment this year than that, given some of the regulatory changes and tax changes in Brazil, but we’re definitely anticipating the loss to materially narrow…which then sets us up in 2027 for close to a break-even year, if not 100% getting there.”
Las Vegas gave MGM a more mixed result. Revenue reached $2.2 billion, only $4 million above last year, while adjusted EBITDAR fell 8% to $749 million. Hotel revenue stayed almost flat at $751 million, but casino revenue fell 5%, table games win slipped 1%, and slot win also declined 1%.
Hornbuckle said: “The market’s changed, the consumer has changed. Luckily for us we have a lot of luxury product and brands that can cater to that, and it’s going to continue.”
He added: “Despite many headwinds, we have yet to see a slowdown. That doesn’t mean over the summer that can’t happen, because booking cycles still remain short.”
MGM has also tested all-inclusive Las Vegas packages at Luxor and Excalibur as operators try to bring back value-driven and first-time travelers. COO Ayesha Molino said: “We’ve been really pleased with the response to the all-inclusive package, we’ve seen really steady momentum since we first deployed that and the customer response has been really good.”
She said a “significant portion” of demand came from new customers.
Away from quarterly numbers, Las Vegas NBA talk also drew attention. MGM part-owns T-Mobile Arena, the main current option for a possible NBA team in the city. Hornbuckle said he was “already under three NDAs” and added: “T-Mobile is part of that conversation, whether it’s short-term or long-term, all roads lead to it for now…so we’re intimately involved in those conversations.”
MGM Osaka also remains on schedule. Hornbuckle said the Japan integrated resort is progressing “on time and on budget for a 2030 opening.”
MGM reported around $38 billion in total liabilities, roughly flat from last year. The company also bought back $90 million of stock in Q1. Shares closed Wednesday down 1% at $39.27, still up about 24% over 12 months but below 2023 highs near $50.