MGM Resorts' Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Core Insights - MGM Resorts International reported strong second-quarter 2025 results, with earnings and revenues exceeding expectations, although the bottom line saw a decline [1][10] - The company's performance was bolstered by significant contributions from the BetMGM venture, Regional Operations, and MGM China, with EBITDA growth from these segments being crucial [1][10] Financial Performance - Earnings per share (EPS) for the quarter was 79 cents, surpassing the Zacks Consensus Estimate of 58 cents, but down from 86 cents in the prior-year quarter [3][10] - Quarterly revenues reached $4.41 billion, exceeding the consensus mark by 2.4% and reflecting a year-over-year increase of 1.8% [3][10] - Consolidated adjusted EBITDA rose by 2% year over year to $647.5 million [4][10] Segment Performance - MGM China's net revenues increased by 9% year over year to $1.11 billion, driven by higher casino revenues and an increase in main floor table games drop [5] - Adjusted property EBITDAR for MGM China was $301.3 million, up from $293.9 million in the prior-year quarter [6] - Domestic operations on the Las Vegas Strip reported net revenues of $2.11 billion, a decline of 4% year over year, attributed to room remodels and decreased table games hold [7] - Regional Operations saw net revenues of $964.6 million, an increase from $927.1 million in the prior-year quarter, supported by higher casino revenues [8] - MGM Digital segment reported net revenues of $163.9 million, up from $143.3 million in the prior-year quarter, primarily due to brand expansion [9] Future Outlook - The company anticipates continued strength in Las Vegas, with capital investments and solid convention bookings expected to drive growth in the fourth quarter of 2025 and into 2026 [2] - The BetMGM venture is on track to achieve its $500 million EBITDA goal, and the MGM Digital segment is projected to become profitable in the coming years [2][10] Balance Sheet and Share Repurchase - MGM Resorts ended the second quarter with cash and cash equivalents of $1.96 billion, down from $2.42 billion at the end of 2024, while long-term debt decreased to $6.21 billion from $6.36 billion [12] - In Q2 2025, MGM repurchased nearly 8 million shares for a total of $217 million, with approximately $2.1 billion available under its share repurchase program as of June 30, 2025 [12]