MGM Resorts has announced a record-breaking second-quarter revenue of $4.5 billion, marking a 1% increase from the prior year. This comes as the board reviews an $18 billion buyout proposal from Barry Diller’s People Inc.
CEO Bill Hornbuckle shared that an independent committee is assessing the offer of $48.30 per share but declined to provide further details on the proceedings. The company reported a substantial rise in net income, climbing to $292 million from $49 million in the same quarter last year. However, adjusted EBITDA fell by 6% to $610 million. MGM concluded the quarter with $2.5 billion in cash and $6 billion in long-term debt.
Hornbuckle expressed confidence in the board's ability to act in the best interests of the company and its shareholders.
In Las Vegas, the company saw a 3% revenue increase to $2.2 billion, with adjusted EBITDA also rising by 3% to $735 million, largely driven by a surge in luxury tourism. MGM reported that budget hotels, including Luxor and Excalibur, continue to face challenges but are benefiting from new all-inclusive hotel package offerings aimed at budget-conscious travelers. COO Ayesha Molino remarked on the strong performance in the luxury segment while acknowledging persistent challenges at the lower end, noting the positive response to the all-inclusive deals.
Meanwhile, in Macau, revenues held steady at $1.1 billion, although adjusted EBITDA dropped by 15% to $257 million due to reduced profits from VIP operations during the FIFA World Cup.
On the digital front, MGM Digital achieved a 20% revenue increase to $196 million, despite a wider EBITDA loss of $31 million. BetMGM separately reported $711 million in revenue, attributed to growth in iGaming, while sports betting revenue held steady and adjusted EBITDA decreased by 15%.
