Dive Brief:
- MGM Resorts International saw net revenue increase 2% year over year to $4.3 billion for the third quarter of 2025, buoyed by growth at MGM China, according to a Wednesday earnings report.
- However, net revenue in Las Vegas declined 7% year over year for the quarter, which the company attributed to the recent room remodel at MGM Grand Las Vegas, as well as decreases in RevPAR, table games win percentage and food and beverage revenue.
- The company also posted 23% third-quarter year-over-year growth in MGM Digital. Last month, MGM appointed Gary Fritz as chief commercial officer and president of that division, and tasked him with accelerating digital and iGaming growth.
Dive Insight:
This is the fourth consecutive quarter of Las Vegas declines for MGM, which posted a Q2 decline of 4% year over year for the segment. On Wednesday, Caesars Entertainment also posted losses in Las Vegas, reporting a nearly 10% decline in the market, which Caesar’s attributed to “softness in leisure demand.”
On a Wednesday call with analysts, MGM CEO Bill Hornbuckle said multiple factors were impacting current dynamics in Las Vegas, including a decline in international visitation, particularly from Canada, as well as the recent Spirit Airlines bankruptcy, which resulted in several canceled routes.
“We are still expecting to receive over 40 million visitors to Las Vegas in 2025,” Hornbuckle said, adding that while the company doesn’t “expect the dynamic to be changed overnight” it is “proactively working to create initiatives and draw incremental visitation.”
MGM posted an overall net Q3 loss of $285 million, which the company attributed to its Oct. 14 decision to withdraw its application for a commercial gaming license in Yonkers, New York.
The company also highlighted the divestment of its MGM Northfield Park casino operations in Ohio, which it sold to Canada-based private equity company Clairvest Group for $546 million in cash, according to an Oct. 16 announcement.
Hornbuckle also said there were signs of fourth-quarter stabilization in Las Vegas as groups and conventions return and the luxury market segment continues to strengthen. Those factors, coupled with the upgraded MGM Las Vegas guest rooms, “puts us on a solid footing as we approach 2026.”
Meanwhile, MGM China posted net third-quarter revenue of $1.1 billion, up 17% year over year despite an estimated $12 million typhoon-related impact last month. MGM China also posted a 20% year-over-year segment adjusted EBITDAR increase to $284 million and finished the third quarter with a 15.5% market share.
