MGM Resorts International’s Q1 2025 results reveal a mixed financial picture, with digital growth offsetting revenue declines in key markets. The company’s strategic moves and future outlook paint an intriguing landscape for the gambling industry.
Key Takeaways:
- MGM’s digital ventures show strong growth despite overall revenue drop
- Las Vegas Strip slot operations perform well, but non-gaming revenue declines
- Company surpasses earnings expectations and expands share buyback program
MGM Resorts International has released its financial results for the first quarter of 2025, showcasing a complex landscape of challenges and opportunities. While the company’s total revenue experienced a 2% decline compared to the same period last year, reaching $4.3 billion, certain segments demonstrated notable strength.
Digital Growth and Las Vegas Slot Success
BetMGM, the online sports-betting partnership between MGM and Entain, emerged as a standout performer. The platform exhibited robust revenue growth and achieved positive EBITDA, marking a significant improvement from its loss in the previous year. This success aligns with the broader trend of digital expansion in the gambling industry.
In Las Vegas, slot machines proved to be a bright spot, generating 7% more revenue compared to the previous year. This increase was supported by record-high Las Vegas Strip hotel occupancy, which reached an impressive 94%. However, the average daily room rate decreased by 7% to $257, contributing to a 3% decline in overall Las Vegas Strip earnings, totaling $2.2 billion.
Challenges in Macau and Non-Gaming Revenue
CEO Bill Hornbuckle acknowledged the challenging comparison to the Super Bowl-driven quarter of 2024 but emphasized the company’s underlying strength. The decline in total revenue was primarily attributed to lower non-gaming income in Las Vegas and reduced casino earnings in Macau.
MGM China experienced a 3% decrease in earnings to $1 billion, reflecting weaker performance in table games. This highlights the ongoing volatility in the Macau market and its impact on major casino operators.
Financial Performance and Shareholder Value
Despite the revenue decline, MGM Resorts outperformed Wall Street’s expectations for adjusted earnings per share, posting $0.69 compared to the anticipated $0.46. The company’s net income for the quarter decreased to $149 million from $217 million in Q1 2024, while adjusted EBITDA reached $637 million.
CFO Jonathan Halkyard highlighted the company’s commitment to returning value to shareholders. During the quarter, MGM repurchased 15 million shares for $494 million. The board’s approval of a new $2 billion share buyback program further underscores confidence in the company’s future prospects.
Looking Ahead
MGM’s leadership expressed optimism about maintaining growth throughout 2025. They pointed to strong advance bookings and upcoming events as drivers for continued success. The company’s MGM Rewards loyalty program has surpassed 50 million members, demonstrating the strength of its brand and customer engagement strategies.
As the gambling industry continues to evolve, MGM Resorts International’s performance serves as a barometer for broader trends. The company’s ability to navigate challenges while capitalizing on digital opportunities and core strengths in Las Vegas will be closely watched by industry observers and investors alike.
