MGM Revenue Hit Record as Profitability Weakened
Adjusted earnings fell 25% to $0.59 a share as operating costs weighed on profit.
MGM Resorts International (MGM) reported record second-quarter revenue as stronger Las Vegas casino results offset slower growth in China and regional weakness. The casino operator’s revenue rose 1% to $4.45 billion, roughly matching the first quarter’s $4.5 billion.
The quarter extended the Las Vegas Strip’s recovery while marking a broader loss of momentum. Consolidated revenue growth slowed from 4% in the first quarter, and Adjusted EBITDA fell 6% to $610 million after rising 20% in the fourth quarter of 2024.
Net income attributable to MGM climbed to $292 million from $49 million a year earlier and $125 million in the first quarter. A $287 million net property-transaction gain lifted GAAP earnings, while MGM recorded a $111 million goodwill impairment. Those items contributed to the divergence between net income and the declines in Adjusted EBITDA and adjusted earnings.
Las Vegas Strip Resorts revenue increased 3% to $2.17 billion, its second consecutive quarter of year-over-year growth, and segment Adjusted EBITDAR rose 3% to $735 million. Casino revenue gained 17% to $536 million as the table-games win percentage climbed to 29.6% from 22.9%, overcoming a 2% decline in table-games drop. Lodging moved the other way: room revenue fell 2%, with average daily rate and revenue per available room each down 4%.
Regional Operations revenue declined 4% to $924 million and segment Adjusted EBITDAR fell 9% to $280 million. Excluding MGM Northfield Park, which was sold in April, same-store revenue reached a quarterly record of $904 million, up 3%, while same-store Adjusted EBITDAR was flat at $271 million. Casino revenue fell 6% as slot handle declined 7%.
MGM China revenue was roughly unchanged at $1.1 billion after increasing 9% in the first quarter, while segment Adjusted EBITDAR dropped 15% to $257 million. Main-floor table-games drop fell 7%, though a higher win percentage supported a 2% increase in table-games win. The operation also recorded $40 million of intercompany branding-license expense, up $21 million under the long-term agreement that took effect earlier in 2024.
MGM Digital revenue rose 20% to $196 million, slowing from 43% growth in the first quarter, and its Adjusted EBITDAR loss widened to $31 million from $26 million. MGM’s share of BetMGM operating income increased to $23.1 million from $21.8 million. The company repurchased about 4 million shares for $164 million during the quarter and had $1.4 billion remaining under its authorization.