MGM Resorts International Q1 Earnings Call Highlights

Key Points

• Consolidated net revenue growth: MGM reported Q1 consolidated revenue growth with Las Vegas net revenue up year-over-year for the first time in over a year, driven by record convention ADRs/catering and new value bundle offerings that are attracting first-time visitors and supporting momentum into Q2.
• Profitability pressures and capital moves: Las Vegas adjusted EBITDAR fell $62 million largely from a $37 million rise in self-insurance expense and $31 million fewer business-interruption proceeds; MGM closed the Northfield Park sale and repurchased about 2.5 million shares for $90 million, freeing capital to potentially accelerate buybacks.
• Digital and Macau progress: BetMGM grew net revenue 6% and adjusted EBITDA 11% while MGM Digital revenue rose 43% with losses narrowing to $26 million, and MGM China grew revenue 9% with market share improving to 17.3% in March despite a higher brand fee that reduced segment EBITDA but increased cash flow to MGM Resorts.

MGM Resorts International NYSE: MGM executives struck an optimistic tone on the company’s first-quarter 2026 earnings call, pointing to consolidated revenue growth driven by strength in digital and China, a return to year-over-year top-line growth in Las Vegas, and continued progress on major development projects such as MGM Osaka.

Las Vegas returns to revenue growth as conventions and new value offerings gain traction

CEO and President Bill Hornbuckle said MGM “once again delivered a consolidated net revenue growth in the Q1,” with Las Vegas net revenue increasing year over year “for the first time in over a year,” despite what he described as an “exceptionally strong leisure comparative.” Hornbuckle attributed the improvement to group and convention strength and said the company expects that momentum to carry into the second quarter.

Hornbuckle highlighted that the first quarter is typically MGM’s “seasonally strong group and convention quarter,” supported by citywide events including CES and CONEXPO-CON/AGG as well as in-house programs at Mandalay Bay and MGM Grand. He said MGM achieved record first-quarter convention ADRs and record catering/banquet revenue, and also cited increased production from its strategic relationship with Marriott. Looking ahead, he said MGM expects convention momentum to continue in Q2, with the convention room-night mix up 2 percentage points year over year to 20%.

Executives also discussed MGM’s push on value, including an all-inclusive offering at Luxor and Excalibur that bundles hotel, dining, entertainment, and parking and resort fees while allowing access to dining across five MGM properties. Hornbuckle said feedback has been “very positive,” noting “roughly one-third of the bookings are from first-time Las Vegas visitors.”

Chief Operating Officer Ayesha Molino said the company has seen “really steady momentum” since the rollout and called customer response “very good.” She added MGM will continue evaluating whether the program should be scaled to other properties and how it can be refined over time.

Vegas profitability pressured by self-insurance and fewer interruption proceeds

Chief Financial Officer Jonathan Halkyard said Las Vegas segment adjusted EBITDAR declined $62 million year over year. He attributed the change to two primary items: a $37 million increase in self-insurance expense and a $31 million decline in business interruption proceeds versus last year.

Halkyard also addressed what he described as an industrywide cost pressure from “the growing prevalence of frivolous litigation,” which he said drove a meaningful portion of the self-insurance increase. “While we support a fair and balanced legal system,” he said, claims lacking merit divert capital and management attention away from investments that benefit employees, guests, and communities.

On trends, Hornbuckle said the quarter began with a difficult comparison—particularly in gaming—due to a strong January a year earlier, but improved as the quarter progressed. “Each month got successively better,” he said, calling March “the best month yet” for MGM. On demand indicators, he said MGM’s April performance was “fine,” cited a successful baccarat tournament, and said the company “like[s] the Q2,” while noting booking windows remain short.

Responding to questions about the customer mix, Hornbuckle said MGM is seeing midweek challenges at the lower end of its Strip portfolio—primarily Luxor and Excalibur—while weekends remain strong. He said those two properties represent about 6% of MGM’s overall EBITDA and added the rest of the Strip portfolio is “performing from fine to good.” Hornbuckle said MGM remains “optimistic that we will have growth by year end,” though he cautioned expectations should be tempered given broader uncertainty.

Regional results steady; Northfield Park sold

Halkyard said MGM’s regional operations posted 2% top-line growth in the first quarter, while segment-adjusted EBITDAR declined $20 million, again reflecting higher self-insurance expense (+$9 million) and lower business interruption proceeds (-$10 million) versus last year. He also noted Borgata and National Harbor experienced weather-related disruptions, but said the company ended March on a “very solid footing,” with those trends continuing into April.

Halkyard confirmed MGM closed on the sale of the Northfield Park operations earlier in the month and reminded investors that Northfield Park will no longer be included in regional results going forward, though MGM will continue to provide same-store comparisons.

Discussing capital allocation, Halkyard said MGM repurchased about 2.5 million shares for $90 million during the quarter and noted that over the past five years the company has reduced its share count by almost 50%. He also said Northfield Park was sold at a 6.6x trailing EBITDA multiple, which he described as significantly higher than what is implied by MGM’s current share price. With the sale completed, he said MGM has more flexibility to redeploy capital, including potentially re-accelerating repurchases.

Macau grows revenue; market share improves by March as MGM refreshes premium offerings

Hornbuckle said MGM China grew net revenues 9% in the quarter, while segment adjusted EBITDA was impacted by a new brand fee. MGM China’s market share was 15.4% for the quarter, with February negatively affected by hold; Hornbuckle said March share improved to 17.3% and “has held steady into April.” He added MGM recently completed suite conversions and renovated premium gaming areas at MGM Cotai ahead of Golden Week and plans further suite renovations in Macau.

Halkyard said MGM China’s segment-adjusted EBITDAR decreased $13 million primarily due to the new branding fee agreement. Under the updated arrangement, he said MGM Resorts received $23 million more in fees than in the prior-year period, and reminded investors the brand fee increased from 1.75% to 3.5% of revenue starting this year. While the fee reduces MGM China segment-adjusted EBITDAR, he said it increases cash flow for MGM Resorts.

In Q&A, MGM China Holdings CEO Kenneth Feng emphasized Macau’s premium focus and said the market is “more about quality” than supply. Feng highlighted recently opened product updates at MGM Cotai, including “63” new suites and roughly 40,000 square feet of premium gaming space with about 40 tables and 15 private rooms. He said MGM is designing about 100 additional suites at MGM Macau along with other gaming and food-and-beverage updates, aiming to target premium customers and respond quickly to changing tastes.

On hold and game mix, Hornbuckle and Feng discussed the rise of side bets, which can carry a higher house advantage. Feng said MGM is rolling out more side bets following regulatory approval and said the company is monitoring adoption and trends, adding that the history of side betting in Macau is “still relatively short” and gained popularity after the pandemic.

Digital grows quickly; BetMGM posts EBITDA gains while MGM Digital narrows losses

Hornbuckle said BetMGM North America continues to prioritize iGaming, while moderating sports betting spend to focus on returns. He added that MGM Digital posted another quarter of double-digit revenue growth and is working toward profitability, with Sweden and the U.K. driving LeoVegas growth and serving as the next sportsbook integration markets.

Halkyard said BetMGM’s first-quarter results included 6% growth in net revenue from operations and 11% growth in adjusted EBITDA, reflecting continued execution of a refined player management strategy. He also said MGM earned about $1.5 million in branding fees from BetMGM in the quarter and noted no quarterly distributions were made due to seasonal cash needs such as NFL postseason and March Madness marketing and annual compensation payouts.

MGM Digital’s net revenues rose 43% in Q1, while segment adjusted EBITDA losses were $26 million, Halkyard said. He added that the company is migrating sportsbooks to its in-house platform and investing around the World Cup opportunity in Europe and Brazil. He said MGM may invest beyond original guidance in Brazil due to regulatory and tax developments and competitive intensity.

Chief Commercial Officer and President of MGM Digital Gary Fritz said the “real growth engine” has been the LeoVegas direct-to-consumer business, concentrated in Europe, particularly the U.K. and Sweden, with additional success in the Netherlands. While Brazil helped due to an easy comparison, Fritz said growth “is not all down to Brazil,” noting LeoVegas’ B2C business is growing “north of 30% year-over-year.” On the path to profitability, Fritz said MGM has previously indicated digital segment losses would halve versus last year, though incremental Brazil investment could affect that trajectory. He said MGM still expects losses to “materially narrow” in 2026, setting up 2027 as “close to a break-even year.”

On potential digital M&A, Fritz said MGM feels confident about its current assets and is “largely fully deployed” on capital commitment for the international digital business, though he added “never say never.”

Elsewhere, Hornbuckle provided updates on development projects. He said MGM Osaka remains “on time and on budget” for a 2030 opening, noting construction milestones including foundation pile installation, the first concrete floor, and erected structural steel. Halkyard said MGM invested about $140 million in Japan during Q1 and expects total funding for the rest of the year of approximately $200 million to $225 million, largely supported by a yen-denominated credit facility closed last October.

Hornbuckle also said Las Vegas has been named a target city for NBA expansion and that MGM is engaged in discussions, though he noted he is already under multiple nondisclosure agreements. He added MGM is working with partners on positioning T-Mobile Arena for potential bidders as the league considers timelines as early as 2028.

About MGM Resorts International NYSE: MGM

MGM Resorts International is a leading global hospitality and entertainment company that develops, owns and operates destination resorts, hotels and casinos. Its properties feature integrated gaming floors alongside luxury accommodations, fine dining and retail outlets, live entertainment venues and convention facilities. The company also offers loyalty programs, sports betting and digital gaming experiences to enhance guest engagement and drive repeat visitation.

The company traces its heritage to the opening of the original MGM Grand Hotel & Casino on the Las Vegas Strip in 1973.

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