MGM Resorts International released a mixed bag of financial results for 2025’s first quarter. The company’s digital ventures and Las Vegas Strip slot operations stood out as top performers. However, the company’s total revenue fell by 2% compared to the same period last year.
Lower Macau Casino Profits and Vegas Non-Gaming Sales Weigh on MGM Earnings
The casino and hospitality giant reported $4.3 billion in consolidated revenue, a drop from the same period last year. Leaders pointed to lower non-gaming income in Las Vegas and reduced casino earnings in Macau as the main reasons for this decline. CEO Bill Hornbuckle recognized the tough comparison to the Super Bowl-driven quarter of 2024 but highlighted the company’s strength. He mentioned that early April numbers hint at a record-breaking month for Las Vegas hotel performance.
A standout performer was BetMGM, the online sports-betting partnership between the company and Entain. It showed robust revenue growth and positive EBITDA, a big improvement from its loss the year before. Yet, the company’s wider digital division still posted a $34 million loss, in line with its ongoing spending in that field.
In Las Vegas, slot machines brought in 7% more money compared to last year, helped by the highest-ever Las Vegas Strip hotel occupancy, which hit 94%. However, the average price for a room per day dropped by 7% to $257, leading to a 3% decrease in Las Vegas Strip earnings, totaling $2.2 billion.
MGM’s operations in other regions held steady, making $900 million. Meanwhile, MGM China saw its earnings fall by 3% to $1 billion, showing weaker performance in table games.
Shareholder Confidence High as MGM Surpasses Expectations and Expands Buyback Plan
Even though MGM Resorts saw a drop in top-line revenue, they beat Wall Street’s predictions for adjusted earnings per share, posting $0.69 compared to the expected $0.46. The company’s net income for the quarter fell to $149 million from $217 million in Q1 2024, while adjusted EBITDA reached $637 million.
CFO Jonathan Halkyard pointed out the company’s plan to give money back to shareholders. MGM bought back 15 million shares for $494 million during the quarter. The board then approved a new $2 billion share buyback program showing they believe in the company’s future success.
Hornbuckle also pointed out the big win of getting over 50 million members in the MGM Rewards loyalty program giving credit to the company’s strong brand and how well they connect with guests. He mentioned that digital services for guests, including AI-powered concierge tools, are taking the place of regular staff jobs more and more as part of bigger plans to boost efficiency.
Looking to the future, MGM’s leaders felt good about keeping up the growth in 2025, pointing to lots of bookings already made and new events to draw people in, such as big-money tournaments and more team-ups with hotel brands from around the world.