MGM Resorts International(US:MGM)2026-02-11 21:16Business Segments - The company has four reportable segments: Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital as of December 31, 2025[17]. - Over half of the net revenue from Las Vegas Strip Resorts typically comes from non-gaming operations, while the majority of Regional Operations' net revenue is derived from gaming operations[20]. - MGM China owns approximately 56% of MGM China, which operates MGM Macau and MGM Cotai, and is expected to drive future growth in the Asian gaming market[22]. - MGM Digital's revenue is primarily generated from online gaming products, including iGaming, digital slots, and online sports betting[24]. Strategic Initiatives - The company is focused on expanding its BetMGM North America Venture, which has launched a Single App Single Wallet feature to enhance customer retention[45]. - The company signed an agreement in September 2023 for the development of an integrated resort in Osaka, Japan, with preliminary construction expected to begin in 2024[44]. - The company is pursuing strategic growth through mergers, acquisitions, and development while maintaining a strong balance sheet and maximizing shareholder returns[39]. - The company is exploring opportunities for gaming expansion in Dubai, following the establishment of a regulatory framework for commercial gaming in the UAE[47]. - The company is committed to expanding its digital brand and has plans for gaming expansion in Dubai and an integrated resort in Japan[67]. Employee Engagement and Development - MGM Resorts has approximately 44,000 full-time and 18,000 part-time employees in the U.S. and 16,000 employees internationally as of December 31, 2025[59]. - The company has collective bargaining agreements covering approximately 37,000 U.S. employees, with some agreements set to expire in 2026[59]. - MGM Resorts has invested in a new virtual physical therapy solution to enhance employee access to qualified therapists[56]. - The company has established a Matching Gifts program in 2021 to match employee donations to their chosen charities[58]. - The company is focused on local hiring and workforce development, fulfilling local hiring commitments where applicable[53]. - MGM Resorts has partnered with the Nevada System of Higher Education to allow employees to earn a degree online free of charge for all credit hours[54]. Risk Management - The company has implemented a machine learning tool within LeoSafePlay to create risk profiles for customers at risk of developing gaming problems[52]. - The company is subject to extensive regulations and must maintain licenses and pay gaming taxes to continue operations[62]. - The company faces risks associated with leased properties, including potential lease termination and relationship issues with lessors[69]. - The concentration of major gaming resorts on the Las Vegas Strip poses operational risks[69]. - The company is susceptible to global geopolitical events affecting leisure and business travel, which could impact operations[69]. - Future construction and expansion projects are subject to significant risks that could adversely affect project timelines and costs[69]. Financial Performance - The company suspended regular dividend payments to stockholders and may not resume them in the foreseeable future[69]. - As of December 31, 2025, variable rate borrowings represented approximately 13% of total borrowings, with fixed-rate debt totaling $5.425 billion[298]. - A 1% adverse change in the exchange rate would result in a foreign currency transaction loss of $20 million as of December 31, 2025[299]. - The company has commitments to fund MGM Osaka of JPY356.9 billion (approximately $2.3 billion) as of December 31, 2025[301]. - A 10% adverse change in the exchange rate for the funding commitment would result in a $228 million increase in the funding commitment[301]. - A 10% adverse change in equity market prices would impact earnings by $35 million as of December 31, 2025[303].