- Casino resorts in Las Vegas delivered modest net revenue growth for MGM despite an 8% drop in adjusted EBITDAR.
- MGM’s properties in China posted a $23M increase in fee revenue driven by a new branding agreement.
- New all-inclusive packages at Luxor and Excalibur drew a third of bookings from first-time Las Vegas visitors.
- MGM finalized the $546M sale of Northfield Park, boosting its capital flexibility.
Mixed Quarter for Casino Resorts
MGM Resorts reported mixed first-quarter results for its flagship casino resorts on the Las Vegas Strip, reports CoStar. Earnings calls highlighted top-line growth but also noted an 8% decline in segment adjusted EBITDAR compared to last year. Net revenue for the Strip properties edged up to $2.2B, while company-wide revenue, including casino resorts in Macau, rose 4% year-over-year to $4.5B.
China Casinos Drive Profit Growth
Casino resorts run by MGM in China outperformed, contributing a $23M increase in fee revenue. This growth stemmed from a long-term branding deal that doubled MGM’s fees to 3.5%. MGM also revealed plans to add around 100 suites at MGM Macau to address demand for higher-end accommodations.
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All-Inclusive Packages Capture New Market
The launch of all-inclusive deals at Luxor and Excalibur casino resorts brought strong interest from new visitors, with a third of bookings coming from first-time guests. This influx of new demand reflects a broader trend, as more households delay home purchases and remain in the renter pool longer, supporting sustained demand across housing and hospitality segments. MGM plans to evaluate and potentially expand this offering across other casino resorts, as it closely monitors customer engagement and revenue impact.
Capital Flexibility and Market Performance
MGM’s $546M sale of MGM Northfield Park provided additional capital for share repurchases and future investments in casino resorts. Company stock climbed nearly 25% over the past year, outpacing the broader NYSE Composite Index. While Las Vegas casino resorts face headwinds, strong China performance and new guest initiatives point to strategic shifts ahead.
