MGM Resorts reported a mixed third quarter: consolidated revenue slipped 1% to $4.2 billion, and adjusted operating earnings fell, while its net loss narrowed sharply from a year earlier. Lower room rates weighed on the Las Vegas Strip business. MGM China, by contrast, posted record quarterly revenue and market share, and regional revenue grew 1% on a same-store basis.
The company also highlighted an amended voting agreement that management said supports future share repurchases. The results release provided no details on the agreement’s terms or any specific repurchase amount.
Key details
- Consolidated results: MGM recorded a net loss attributable to the company of $17 million, compared with a $285 million loss in the year-earlier quarter. Diluted loss per share was 7 cents, versus a loss of $1.05 a year earlier.
- Adjusted earnings declined: Consolidated Adjusted EBITDA was $403 million, down from $506 million. Adjusted diluted loss per share was 11 cents, compared with adjusted earnings of 24 cents a year earlier.
- Las Vegas Strip: Revenue fell 2% to $2.0 billion, while segment Adjusted EBITDAR—a measure of operating earnings—declined 12% to $531 million. CEO Bill Hornbuckle said lower room rates affected the quarter’s results. He also said October had rebounded favorably, without providing figures.
- Regional Operations: Reported revenue was $883 million, down 8% from $957 million a year earlier. On a same-store basis, adjusted for dispositions, revenue rose 1% to $883 million from $873 million. Segment Adjusted EBITDAR declined 18% to $243 million from $296 million.
- MGM China: The business achieved record quarterly revenue and record market share of 17.1%. Management said revenue grew 5%, though the release excerpt did not provide the division’s revenue total.
- Digital businesses: BetMGM North America Venture distributions and branding license fees paid to MGM Resorts totaled $34 million for the quarter. Management also said BetMGM and MGM Digital had strong top-line growth, without giving specific figures for those businesses.
- Share repurchases and growth plans: CFO Jonathan Halkyard said an amended voting agreement announced earlier that day establishes a supportive framework for MGM to pursue share repurchases. He also said the company had repurchased nearly half of its outstanding shares over the past five years. Management cited its digital businesses and the planned MGM Osaka resort as longer-term growth drivers, and said Las Vegas Strip segment Adjusted EBITDAR over the trailing 12 months was nearly 70% higher than in calendar 2019.
The quarter shows contrasting performance across MGM’s portfolio: Las Vegas and regional operating earnings were lower, while MGM China set records and regional same-store revenue edged up. Management’s comments link the voting agreement to potential buybacks, but the results announcement does not specify the agreement’s mechanics or a new repurchase target.