MGM Resorts Q1 revenue dips; board approves $2B share buyback
MGM Resorts International (NYSE: MGM) reported solid financial results for the first quarter of 2025, showcasing strength in core operations while advancing its digital strategy and shareholder returns.
For the quarter ended 31 March 2025, MGM consolidated net revenues of $4.3 billion, a 2 percent decline from $4.38 billion a year ago, attributed to lower revenues from Las Vegas Strip resorts and MGM China. Net income attributable to MGM fell to $149 million, down from $217 million in Q1 2024, while diluted earnings per share came in at $0.51, in line with analyst expectations but lower than $0.67 last year.
The company’s Adjusted EPS stood at $0.69, down from $0.74 a year ago, reflecting higher non-operating costs and foreign currency transactions.
CEO Bill Hornbuckle highlighted resilience despite challenging year-over-year comparisons. “We achieved strong results across our portfolio in the face of a tough comp to last year’s Las Vegas Super Bowl quarter,” he said, noting the company’s momentum heading into the rest of 2025.
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Las Vegas Strip performance
MGM’s Las Vegas Strip resorts delivered $2.18 billion in net revenue, a 3 percent drop from the prior year due to a 9 percent decline in room revenue from lower average daily rates (ADR) post-Super Bowl. However, the company achieved a record 94 percent occupancy rate, with slot win climbing 7 percent year-over-year to $545 million.
Segment Adjusted EBITDAR for the Strip came in at $811 million, bolstered by a $37 million insurance recovery tied to the September 2023 cybersecurity incident.
Hornbuckle noted that April is on track to be a record month for hotel performance, backed by solid bookings and strong leisure demand.
Digital segment shows progress
MGM’s digital business, which includes LeoVegas, posted flat net revenue at $128 million and an Adjusted EBITDAR loss of $34 million, wider than the $19 million loss a year ago.
However, its BetMGM joint venture showed marked improvement, reporting a 34 percent rise in net revenue from operations and a swing to positive EBITDA of $22 million, reversing a $150 million loss in the prior year.
The digital unit continues to expand internationally, with a successful launch in Brazil, but faced regulatory challenges in the Netherlands and Sweden. Despite headwinds, BetMGM reaffirmed its full-year revenue guidance of $2.4-$2.5 billion, targeting positive EBITDA and aiming for a long-term goal of $500 million in annual EBITDA.
MGM China and regional operations
In Macau, MGM China reported $1.03 billion in net revenue, down 3 percent year-over-year, with a 5 percent decline in main floor table games drop. Segment Adjusted EBITDAR fell 5 percent to $286 million, but MGM maintained a 15.7 percent market share in the region.
Regional U.S. properties generated $900 million in revenue, down 1 percent, but achieved a 2 percent gain in Segment Adjusted EBITDAR to $279 million, aided by a $12 million insurance recovery.
Also read: MGM China bags $3 billion revolving credit facility
Aggressive share buybacks
The company accelerated its share repurchase programme, buying back 15 million shares for $494 million in Q1, reducing shares outstanding by 43 percent since 2021. MGM’s board also authorised a new $2 billion repurchase programme, which further indicates the board’s confidence in its valuation and balance sheet strength.
“We continue to see significant value in our shares at current levels,” CFO Jonathan Halkyard said, adding that MGM retains ample liquidity with over $2.27 billion in cash on hand as of March 31.
Investments for long-term growth
MGM updated its equity commitment for its integrated resort project in Japan to JPY428 billion, with JPY392 billion remaining to be funded for a 43.5 percent ownership stake. The company acknowledged the rising costs but said it is committed to establishing a foothold in the Japanese gaming market.
Looking ahead, MGM is implementing a $200 million EBITDA enhancement plan, with over $150 million in savings expected to materialise this year.
“Our diversified operations, brand strength, and disciplined capital deployment position us well for sustainable growth,” Hornbuckle concluded.
The share price of MGM Resorts International closed Thursday 0.064 percent higher at $31.46 apiece on the New York Stock Exchange.
