MGM Resorts (MGM) Q3 2026 Earnings Call Transcript

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DATE

Wednesday, Oct. 28, 2026

CALL PARTICIPANTS

• Vice President, Investor Relations – Howard H. Wang
• Chief Executive Officer and President – Bill Hornbuckle
• Chief Operating Officer – Ayesha Khanna Molino
• Chief Financial Officer – Jonathan S. Halkyard
• Chief Commercial Officer and President of MGM Digital – Gary Fritz
• Chief Executive Officer of MGM China Holdings – Kenneth Feng

TAKEAWAYS

• Consolidated Revenue — $4.2 billion, representing a 1% decrease resulting from lower room revenues in Las Vegas and the impact of regional dispositions.
• Las Vegas Strip Adjusted EBITDAR — $531 million, a 12% decline driven primarily by lower average daily rates and a higher mix of promotional casino marketing.
• Las Vegas Casino Revenue — $488 million, an 8% increase supported by record third quarter slot win and high-end baccarat play.
• Las Vegas Average Daily Rate — $218, an 8% decrease reflecting macro headwinds that affected the leisure and transient customer segments.
• Las Vegas Revenue Per Available Room — $193, an 8% decline as occupancy remained flat at 89% year over year.
• Las Vegas Convention Volume — 500,000 room nights, exceeding internal expectations and placing the segment on pace for a 20% total room night mix for the year.
• Regional Operations Revenue — $883 million, an 8% reported decrease but a 1% increase on a same-store basis when adjusted for the Northfield Park disposition.
• Regional Adjusted EBITDAR — $243 million, a 7% same-store decrease due to lower table games hold at two specific properties.
• MGM China Revenue — $1.1 billion, a 5% increase resulting in record quarterly revenue for the segment.
• MGM China Market Share — 17.1%, representing a record third quarter high despite a competitive promotional environment.
• MGM Digital Revenue — $184 million, a 6% increase led by brand growth in international business-to-consumer channels.
• MGM Digital Adjusted EBITDAR — Loss of $4 million, narrowing significantly from a $23 million loss in the prior year quarter.
• BetMGM Net Revenue — 7% increase, reflecting continued growth in the North American online gaming venture.
• BetMGM Adjusted EBITDA — 112% increase, demonstrating substantial flow-through from top-line revenue gains.
• BetMGM Licensing and Distributions — $34 million, paid to MGM Resorts during the quarter in the form of branding fees and profit distributions.
• MGM Osaka Construction — 11% complete, with 70% of foundation piles finished and the project remaining on schedule for a 2030 opening.
• Japan Project Spending — ¥114 billion to date, with plans to deploy approximately $1 billion annually in 2027 and 2028 to satisfy funding commitments.
• Share Repurchase Capacity — $1.4 billion, remaining under the current authorized program after the company refrained from buybacks in the third quarter.
• Debt Maturity Profile — $675 million, representing the only domestic senior notes maturing within the next 12 months.
• Las Vegas Trailing EBITDAR — nearly 70% higher than full-year 2019 levels on a trailing 12-month basis.
• BetMGM iGaming Revenue Mix — 70%, identifying the segment as the primary growth engine for the North American venture.

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RISKS

• Hornbuckle noted, “Jet fuel prices hit a record high in September, and while domestic airfares have risen in average of 12%… we saw airline pricing to Las Vegas up about 45% in 3Q versus last summer,” impacting leisure demand and room rates.
• Fritz reported that while the company is monitoring the regulatory environment with its partner Grupo Globo, the digital gaming market in Brazil is currently shut down following a provisional measure enacted in September.

SUMMARY

MGM Resorts International (MGM -2.57%) reported a third quarter defined by macroeconomic pressures in the domestic travel market and strategic progress in its international and digital divisions. Management noted that significantly higher airline pricing to Las Vegas negatively impacted room rates for leisure guests, although this was partially offset by record casino performance and robust group business. The company reached a formal resolution with its largest shareholder regarding an abandoned acquisition proposal, establishing a long-term governance framework that includes voting alignment on future change of control transactions. Internationally, the company achieved record performance in Macau and continued construction on its multi-billion dollar integrated resort in Japan. Management indicated that the digital business is nearing profitability while focusing resources on high-value iGaming and international expansion.

• Hornbuckle reported that People Inc. withdrew its acquisition offer after failing to assemble a syndicate, leading to an amended voting agreement that restricts their ownership to 29.9%.
• Management noted that the BetMGM venture is prioritizing iGaming, which now generates nearly 70% of its net revenue from operations and provides insulation from prediction market trends.
• Halkyard stated that the company views its current valuation as an “incredible dislocation” against underlying cash flows, noting the domestic operations effectively generate over $1.5 billion in annual EBITDA.
• Halkyard noted that the company launched its proprietary sports betting platform in the United Kingdom, which currently handles over 80% of its online sports revenue in that market.
• Molino stated that the company managed to keep full-time equivalent staffing levels flat year over year despite an increase of 54,000 occupied room nights during the third quarter.
• Hornbuckle reported that the MGM Osaka project remains on time and on budget for a 2030 opening, with concrete and steel fabrication work now progressing above ground.

INDUSTRY GLOSSARY

• ADR (Average Daily Rate): A metric representing the average rental income per paid occupied room per day.
• EBITDAR: Earnings before interest, taxes, depreciation, amortization, and rent; a key profit measure for companies with significant lease obligations.
• FIT (Flexible Independent Travel): Transient leisure travelers who book individual stays rather than traveling as part of a group or package.
• iGaming: Online casino games, such as slots and table games, played for real money.
• RevPAR (Revenue Per Available Room): A performance metric calculated by multiplying a hotel’s average daily room rate by its occupancy rate.
• Slot Win: The amount of money the casino retains from slot machine wagers after all payouts have been made.
• Table Games Drop: The total amount of cash or credit exchanged for chips at casino table games.

Full Conference Call Transcript

Operator: Good afternoon. And welcome to the MGM Resorts International Third Quarter 26 Earnings Conference Call. Joining the call from the company tod

Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.