MGM Resorts has achieved a record-breaking second-quarter revenue of $4.5 billion, reflecting a 1% increase from the same period last year. Simultaneously, the company's board is reviewing an $18 billion buyout proposal from Barry Diller's People Inc.
CEO Bill Hornbuckle indicated that the independent committee assessing the offer, which values shares at $48.30 each, is focused on making the most beneficial decision for shareholders, though he refrained from disclosing specific details about the ongoing evaluation.
MGM’s net income saw a significant rise to $292 million, up from last year's $49 million, despite a 6% drop in adjusted EBITDA, which fell to $610 million. The company reported $2.5 billion in cash and a long-term debt of $6 billion at the end of the quarter.
Hornbuckle expressed confidence, saying, “I’m confident our board will pursue the course of action that’s in the best interest of the company and our shareholders.”
In Las Vegas, MGM recorded a 3% increase in revenue, totaling $2.2 billion, with adjusted EBITDA also rising 3% to $735 million, largely attributed to strong demand from luxury travelers. The company noted challenges for its budget hotels, including Luxor and Excalibur, but highlighted a positive response to newly introduced all-inclusive hotel packages aimed at budget-conscious customers.
COO Ayesha Molino commented, “Overall, I think we continue to see really strong strength in the luxury segment. As we’ve noted, the lower end of the segment, particularly Luxor and Excalibur, those do remain challenged, but we’ve been deploying offers such as the all-inclusive and we’ve seen positive reaction to that.”
In Macau, overall revenues remained steady at $1.1 billion, though adjusted EBITDA dipped 15% to $257 million due to reduced profits from VIP clients coinciding with the FIFA World Cup.
MGM Digital's revenue rose 20% to $196 million, while its EBITDA loss increased to $31 million. BetMGM independently reported $711 million in revenue, largely driven by ongoing growth in iGaming, although sports betting revenue plateaued and adjusted EBITDA experienced a 15% decline.
