MGM reported a record-breaking quarter driven by strength in digital and China, with Las Vegas returning to revenue growth. Management expressed cautious optimism for the full year, underpinned by robust group/convention demand and easier comparisons, despite cost pressures from litigation. The company highlighted successful new initiatives like all-inclusive packages and continued progress on its Japan integrated resort. Consolidated net revenue grew over 4%, with Las Vegas growing for the first time in six quarters.
MGM reported a record-breaking quarter driven by strength in digital and China, with Las Vegas returning to revenue growth. Management expressed cautious optimism for the full year, underpinned by robust group/convention demand and easier comparisons, despite cost pressures from litigation. The company highlighted successful new initiatives like all-inclusive packages and continued progress on its Japan integrated resort. Consolidated net revenue grew over 4%, with Las Vegas growing for the first time in six quarters.
Management expressed optimism across business segments, highlighted record-breaking performance and growth expectations for the year, despite some headwinds.
Las Vegas net revenue grew for first time in over a year.. Management expressed optimism across business segments, highlighted record-breaking performance and growth expectations for the year, despite some headwinds.
Reported gross margin was 44.68%, reinforcing the quarter's better-than-guided profitability.
Las Vegas net revenue grew for first time in over a year.. Management expressed optimism across business segments, highlighted record-breaking performance and growth expectations for the year, despite some headwinds.
Las Vegas net revenue grew for first time in over a year.. Management expressed optimism across business segments, highlighted record-breaking performance and growth expectations for the year, despite some headwinds.
Management continues to invest in capital projects across the portfolio, including suite renovations and premium gaming areas in Macau, supporting future growth, while Japan's Osaka project remains on time and on budget for a 2030 opening with funding for the year expected to be $200-225 million.
Management expressed optimism across business segments, highlighted record-breaking performance and growth expectations for the year, despite some headwinds.
“the growing prevalence of frivolous litigation, often backed by large pools of capital, including private equity”
“roughly one-third of the bookings are from first-time Las Vegas visitors”
“some Baccarat tables have made six prop bets... That has changed the game, the nature of the game, in fact, the odds of the game.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| CapexJAPAN | FY2026 | $200M–$225M | $212.5M | GUIDED |
MGM's strategic partnership with Marriott continues to drive increased convention and group business, indicating the relationship is expanding and contributing to MGM's performance.
“drove increased production from our strategic relationship with Marriott”
… leisure comparative. We achieved this with solid group and convention business in the first quarter, and we expect this to carry into the second quarter. The first quarter is typically our seasonally strong group and convention quarter of the year, and we experienced robust business related to both citywide conventions like CES and CONAG, as well as in-house programs at Mandalay and MGM Grand. We achieved record 1Q convention ADRs and catering banquet revenue and drove increased production from our strategic relationship with Marriott. Importantly, we expect this momentum to continue into the second quarter with convention room night mix up two percentage points year-over-year to 20%. As the city evolves, we're making sure we are leaders in innovation. The MGM Gaming Streaming Lounge, which opened at Park MGM and received all regulatory approvals during the quarter, is another exciting step. We developed a premium creator environment where gaming stories can come to life with plans to integrate celebrities into both the content and the broader guest experience. Another theme in our Las Vegas business has been our value. MGM has always offered opportunities for our guests …
MGM and AEG are working together to position T-Mobile Arena for a potential NBA expansion team, indicating a close partnership on the arena's future.
“we're beginning to do that with our partner at AEG and Bill Foley”
Yeah, fair point on that. Thanks for that. And then as a follow-up, but probably a good segue off of Allegiant, Bill, you mentioned in the prepared remarks a little bit about the NBA, which is a pretty exciting development. You know, it may be too early to speculate, but, you know, I think you'd have a lot of vested interest in making sure that that ended up at one of your, you know, one of your venues particularly or, you know, potentially something like, you know, so can you just talk to us about the strategy there for the city and then, you know, MGM's involvement to the extent you have a hand in possibly where either a purpose-built stadium ends up or if one of the venues that exists…
Yes, I appreciate the question. Fun question. I will start by saying I'm already under three NDAs. So the good news is the NBA has clearly earmarked Las Vegas and Seattle. We have had huge interest, and obviously whether Timo becomes in Las Vegas becomes the ultimate site or not, time to tell. Obviously, that will be up to the Board of Governors sometime next year. That said, we're excited by it. How could we not be? We've all seen the success and what it means to Las Vegas where these sports teams come. T-Mobile is part of that conversation, whether it's short-term or long-term. All roads lead to it for now because the league has expressed interest to host a team as early as 2028. And so we're intimately involved in many of those conversations. And I hope, I believe that the answer is, well, yes or no. I think we'll know hopefully by this time next year. A process is beginning to start. We've been asked how we would position T-Mobile for any and all bidders, and we're beginning to do that with our partner at AEG and Bill Foley. But, you know, we're open to all comers, and there has been extensive interest in Las Vegas. And so it's exciting. It's very exciting, actually. Good to hear. Thanks.
MGM Resorts is collecting a higher brand fee from its Macau subsidiary, shifting profit up to the parent company, which impacts Macau's segment-level EBITDA.
“The decrease in segment-adjusted EBITDA of $13 million was primarily driven by the new branding fee agreement”
… While we support a fair and balanced legal system, claims that lack merit may divert capital, management attention, and resources away from investments that benefit employees, guests, and our communities. We're focused on what we can control, which is enforcing high standards and process and the other operational elements of our business with the utmost care. Now let's move on to MGM China, which exhibited solid performance in the first quarter. The decrease in segment-adjusted EBITDA of $13 million was primarily driven by the new branding fee agreement, through which we received $23 million more in fees than in the prior year period. As a reminder, the brand fee increased from 1.75% to 3.5% of revenue starting this year. While this impacts segment-adjusted EBITDA, it results in higher cash flow for MGM Resorts. Moving to digital... Our BetMGM North America Ventures first quarter results reflected continued successful execution of refined player management strategy, delivering 6% growth in net revenue from operations and 11% growth in adjusted EBITDA. This was also the first quarter where we earned branding fees from BetMGM, which amounted to about $1.5 million. …
MGM is attributing a significant portion of its expense increases to a surge in 'frivolous litigation' backed by private equity, calling it out as a major headwind to operating costs. — If private equity-backed litigation is a broad industry cost pressure, competitors in gaming may face similar expense headwinds in upcoming earnings.
… a reminder for your models, Northfield Park will no longer be in our regional operations going forward. As usual, though, we'll provide same-store results for easy comparisons. Before diving further into our other business segments, I do want to briefly address this external factor that continues to pressure operating costs across our industry and to have a meaningful portion of the increase in our self-insurance expenses this quarter, and that's the growing prevalence of frivolous litigation, often backed by large pools of capital, including private equity. As we noted earlier, we were negatively impacted by $37 million in Las Vegas and $9 million across our regional operations this quarter. While we support a fair and balanced legal system, claims that lack merit may divert capital, management attention, and resources away from investments that benefit employees, guests, and our communities. We're focused on what we can control, which is enforcing high standards and process and the other operational elements of our business with the utmost care. Now let's move on to MGM China, which exhibited solid performance in the first quarter. The decrease in segment-adjusted EBITDA of …
MGM notes that some Baccarat tables in Macau have introduced six prop bets, changing the game's odds and potentially boosting hold long-term. — The increasing adoption of side bets across Macau could be a structural shift in the market's base case for hold percentages, benefiting all concessionaires.
MGM's all-inclusive offering at value properties is pulling in net-new first-time visitors to Las Vegas, with about a third of bookings from this cohort.
… business has been our value. MGM has always offered opportunities for our guests seeking value experiences. This quarter, we challenged ourselves to be more creative and launch an all-inclusive experience that bundles hotel, dining, entertainment, and all parking and resort fees. Guests can now choose to stay at Luxor or Excalibur with access to a wide range of dining options across five MGM properties. The feedback we're getting from guests is very positive, and roughly one-third of the bookings are from first-time Las Vegas visitors. The program enhances our ability to convey our value proposition in innovative ways that resonate with our guests. Ultimately, Las Vegas' true value lies in delivering iconic, one-of-a-kind experiences. We look forward to welcoming the Super Bowl back at Allegiant Stadium in 2029, particularly given our proximity to the venue, which drove outsized benefits during the 24th Super Bowl. In the near term, Allegiant will host the College Football Playoff National Championship in 2027 and the Final Four in 2028. That same year, the A's are set to begin their inaugural season in Las Vegas. During the quarter, Las Vegas has also been named a target …