LAS VEGAS, Aug. 26, 2025 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") will participate in the BofA Securities 2025 Gaming and Lodging Conference on Thursday, September 4, 2025. MGM Resorts management will speak at a session scheduled to begin at 10:40 a.m. ET. A live webcast of the session will be available under the Events & Presentation section of the MGM Investor Relations website at http://investors.mgmresorts.comAbout MGM Resorts InternationalMGM Resorts Intern ...

Financial Data and Key Metrics Changes - People Inc achieved a 9% digital revenue growth in Q2, up from 7% in Q1, marking a return to core sessions growth [6][9] - Consolidated IAC adjusted EBITDA increased by 15% in the quarter, with guidance for full-year EBITDA set between $247 million and $285 million [9][45] - The refinancing of $1.4 billion in debt at People Inc was completed, replacing the original acquisition capital structure with new bank debt and bonds [6] Business Line Data and Key Metrics Changes - MGM reported a 36% net revenue growth in Q2, with increased guidance for the full year to at least $2.7 billion in revenue and at least $150 million in EBITDA [8] - Care.com has seen a divergence in performance, with enterprise business growing solidly while consumer revenue has declined from pandemic highs [41][42] - Digital margins for People Inc reached just under 29% in FY 2024, with Q2 digital EBITDA flat year-over-year at $63 million despite a 9% revenue growth [37][38] Market Data and Key Metrics Changes - The percentage of traffic from Google has decreased from 52% to 28%, while non-Google search sessions have increased at a 29% CAGR [32][33] - Approximately 36% of digital revenue now comes from off-platform sources, indicating a shift in revenue generation strategies [30][31] Company Strategy and Development Direction - The rebranding to People Inc aims to reflect the company's focus on premium content created by people for people, emphasizing the importance of human expertise [11][14] - The company is actively pursuing M&A opportunities and exploring strategic divestitures to bolster cash balances [10][69] - A focus on diversifying audience sources and reducing reliance on Google traffic is central to the company's strategy, with investments in email, events, and syndication businesses [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue goals despite challenges posed by AI and changes in Google's search algorithms [21][32] - The company anticipates continued growth in off-platform audiences and improved monetization, guiding for 7% to 9% digital revenue growth in Q3 [58] - Management acknowledged the need to optimize the matching process on Care.com to drive growth in both consumer and enterprise segments [90][91] Other Important Information - The company has maintained guidance for Care.com at $45 million to $55 million, while corporate run rate costs have been reduced to $110 million to $115 million [46] - The company is exploring new pricing and packaging strategies to better meet consumer needs in the care marketplace [90] Q&A Session Summary Question: Can you elaborate on the trajectory of sessions, including Google Search and off-platform views? - Management expects O&O sessions to be slightly down in Q3 due to tough comps but anticipates flat to slightly up growth going forward, with off-platform growth continuing [50][51] Question: Can you provide insights on the 2Q PeopleLink digital revenue? - Digital advertising grew 5% in Q2, with strong performance in performance marketing and licensing, while core sessions growth was 2% [55][56] Question: Why is the new brand name People Inc the right choice? - The name reflects the company's goal of achieving platform scale with premium branded environments, resonating well with clients and employees [64][66] Question: What is the current state of the M&A landscape? - The company is actively pursuing both small and large acquisition opportunities, focusing on creative and defensible businesses [69][70] Question: What factors need to change for Care.com to grow faster? - The company needs to drive consumer demand and improve the matching process between care seekers and providers, while expanding into senior and pet care markets [90][91]

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]

Financial Data and Key Metrics Changes - The company reported record highest ever consolidated net revenue results in the second quarter of 2025, driven by a diverse portfolio and global presence [6][7][17] - BetMGM North America raised full year 2025 guidance for the second time, implying an EBITDA turnaround of nearly $400 million compared to last year [8][19] - Adjusted EBITDAR in Las Vegas declined by $72 million, primarily due to the MGM Grand's room remodel and midweek performance issues [21][22] Business Line Data and Key Metrics Changes - BetMGM North America saw a 36% increase in revenue from operations, with iGaming growing 29% and sports betting top line growing 56% [18][19] - MGM Digital, excluding BetMGM North America, grew its top line by 14%, with expectations of over $150 million in EBITDA enhancements in 2025 [24][25] - MGM China achieved record adjusted EBITDAR and market share of 16.6%, with a focus on premium mass players [11][12][23] Market Data and Key Metrics Changes - Las Vegas experienced record table games and slot volumes, but the adjusted EBITDAR decline was isolated to specific properties [9][20] - MGM China reported a 3% increase in adjusted EBITDAR, with strong performance across all business segments [23] - Regional properties achieved record high net revenues, demonstrating stability during volatile times [12] Company Strategy and Development Direction - The company aims to be the world's premier gaming entertainment company, leveraging its unmatched portfolio diversity to drive growth [6][7][27] - MGM is focused on capitalizing on significant near-term catalysts in BetMGM and Las Vegas, as well as mid to long-term catalysts in MGM Digital and development projects [7][8][14] - The company is positioned to benefit from major events in Las Vegas, including the new MLB stadium and ongoing renovations at the Las Vegas Convention Center [9][10][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about restoring growth in Las Vegas during the fourth quarter, supported by positive bookings and convention activity [22][50] - The company remains confident in its ability to attract premium customers despite challenges in the value-oriented segment [91][92] - Management highlighted the importance of maintaining a strong balance sheet while pursuing growth opportunities in international markets [17][29] Other Important Information - The company repurchased 8 million shares for $217 million, with board approval for an additional $2 billion in share repurchases [25][26] - MGM's exclusive relationship with Marriott is driving higher quality customer bookings, with a significant increase in room nights booked [10][44] - The company is actively working on legislative issues related to tax impacts on the gaming community [65][66] Q&A Session Summary Question: Impact of MGM Grand disruption - The estimated impact remains at $65 million, with about $40 million experienced in the first six months [34] Question: Pricing and value concerns in Vegas - Luxury products are performing well, with ADR up 4%, while value-oriented properties are facing challenges [36][37] Question: Digital business cross benefits - Significant growth in Nevada monthly actives and strong player engagement are noted, with a focus on omnichannel advantages [41] Question: Update on Bonvoy arrangement - The partnership is on track, with over 900,000 room nights expected this year and positive customer spending trends [43] Question: Visitation decline on the Strip - International visitation has been an issue, but premium customer attraction remains strong [90][91] Question: Dividend policy at MGM China - A new dividend policy of 50% of distributable net income has been approved, providing substantial cash flow for MGM Resorts [60][61] Question: Buyback strategy amidst growth pipeline - The company is cautious with share repurchases due to its development pipeline but remains within leverage targets [70][71]

Financial Data and Key Metrics Changes - The company reported record highest ever consolidated net revenue results in Q2 2025, driven by a diverse portfolio and global presence [6][18] - BetMGM North America raised full year 2025 guidance for the second time, implying an EBITDA turnaround of nearly $400 million compared to last year [7][20] - Adjusted EBITDAR decline in Las Vegas was primarily due to the MGM Grand, which accounted for over 80% of the decline, with a total impact of $60 million [10][22] Business Line Data and Key Metrics Changes - BetMGM North America saw revenue from operations up 36% in Q2, with EBITDA of $86 million and iGaming growing 29% [19] - Las Vegas resorts reported record table games and slot volumes, with adjusted EBITDAR decline isolated to specific properties [9][21] - MGM Digital grew its top line by 14%, with expectations of over $150 million in EBITDA enhancements in 2025 [25] Market Data and Key Metrics Changes - MGM China achieved record adjusted EBITDAR and market share of 16.6%, with share increasing every month of the quarter [13] - Regional properties reported record high net revenues and strong performance across gaming, hotel, and food and beverage segments [14] - The Las Vegas Convention Center is undergoing a $1.6 billion renovation, expected to enhance convention attendance [11] Company Strategy and Development Direction - The company aims to be the world's premier gaming entertainment company, leveraging its unmatched portfolio diversity to drive growth [6][28] - MGM is positioned to capitalize on significant near-term catalysts in BetMGM and Las Vegas, as well as mid to long-term catalysts in digital and development projects [7][18] - The company is focused on premium and luxury offerings, particularly in Macau and Las Vegas, to capture market share [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about restoring growth in Las Vegas during Q4 2025, supported by positive bookings and upcoming events [22][32] - The company remains confident in its ability to attract premium customers despite challenges in the value-oriented segment [92] - Management highlighted the importance of maintaining a strong balance sheet while pursuing growth opportunities in various markets [18][72] Other Important Information - The company repurchased 8 million shares for $217 million in April, with board approval for an additional $2 billion in share repurchases [26] - MGM's exclusive relationship with Marriott is driving performance, with a significant increase in room nights booked [12][45] - The company is actively pursuing development projects in Japan and New York, with expectations of substantial revenue generation [17][18] Q&A Session Summary Question: Impact of MGM Grand disruption - The estimated impact remains at $65 million, with about $40 million experienced in the first half of the year [35][36] Question: Pricing and value concerns in Vegas - Luxury products have seen an increase in average daily rate (ADR), while value-oriented properties are facing challenges [38][39] Question: Digital business cross-benefits - There has been a 30% growth in Nevada monthly actives, showcasing the effectiveness of the omnichannel strategy [41][43] Question: Update on MGM China dividend policy - The board approved a dividend policy of 50% of distributable net income, providing substantial cash flow for the company [61][62] Question: Share buyback strategy - The company is cautious about share repurchases due to its development pipeline but remains within leverage targets [72][73] Question: Visitation decline in Las Vegas - International visitation has been an issue, but the company is confident in attracting premium customers [90][91]

Core Viewpoint - MGM Resorts International is expected to report a decline in both revenues and earnings per share (EPS) for the second quarter of 2025, influenced by softer operational trends and inflationary pressures [1][8]. Estimate Revisions - The Zacks Consensus Estimate for second-quarter EPS has risen to 58 cents from 55 cents, but this reflects a 32.6% decrease from 86 cents in the same quarter last year [2]. - Projected revenues are estimated at nearly $4.3 billion, indicating a slight decline of 0.6% from the previous year's quarter [2]. Factors Influencing Quarterly Results - The decline in MGM's top and bottom lines is attributed to lower casino activity, reduced non-gaming demand, and weaker average daily rates, compounded by ongoing inflation and a tight labor market [3]. - Contributions from casino, rooms, and food and beverage are expected to be lower, with estimates of $2.17 billion, $880 million, and $722 million respectively, compared to $2.21 billion, $899 million, and $802 million from the prior year [4]. Operational Insights - Elevated operating expenses and wage inflation are likely to exert margin pressure, although digital growth, strong Las Vegas operations, and robust group bookings are expected to support performance [5]. - For Las Vegas operations, revenue estimates for casino and rooms are pegged at $500 million and $775 million, respectively, showing growth from $485 million and $767 million in the prior year [6]. - Regional properties are anticipated to generate steady cash flow, with revenue estimates of $702 million and $80 million for casino and rooms, respectively, compared to $684 million and $79 million in the previous year [7]. Earnings Prediction Model - The current model does not predict an earnings beat for MGM Resorts, as the company has an Earnings ESP of -2.80% and a Zacks Rank of 3 (Hold) [9].

Group 1 - The Value Lab focuses on long-only value investment ideas, targeting international mispriced equities with a portfolio yield of approximately 4% [1] - Entain Plc has seen a significant increase in BetMGM revenues, surpassing last year's figures, indicating strong performance since the last coverage [2] - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are expected to yield non-correlated and outsized returns in the current economic environment [3]

Core Viewpoint - MGM Resorts stock is perceived as a value trap despite positive developments such as a new stock buyback and growth in online gaming, with the stock declining year-to-date while the S&P 500 has increased by approximately 3% [2][3] Financial Performance - BetMGM raised its revenue projection for 2025 to at least $2.6 billion, up from $2.4–$2.5 billion, with EBITDA now anticipated to be no less than $100 million, indicating significant improvement [3] - MGM Resorts International has averaged a growth rate of 21.8% in its top line over the last 3 years, compared to a 5.5% increase for the S&P 500 [7] - Revenues increased by 6.7% from $16 billion to $17 billion over the last 12 months, while the S&P 500 also grew by 5.5% [7] - Quarterly revenues fell 0.7% to $4.3 billion in the latest quarter from $4.4 billion a year prior, contrasting with a 4.8% enhancement for the S&P 500 [8] Valuation Metrics - MGM has a price-to-sales (P/S) ratio of 0.5 compared to 3.1 for the S&P 500, and a price-to-earnings (P/E) ratio of 15.4 against the benchmark's 26.9 [7] - The company's price-to-free cash flow (P/FCF) ratio is 7.8 versus 20.9 for the S&P 500 [7] Profitability and Financial Stability - MGM's operating income for the past four quarters was $1.7 billion, reflecting a low operating margin of 9.7% [9] - The net income stood at $747 million, suggesting a low net income margin of 4.3% compared to 11.6% for the S&P 500 [9] - MGM's debt level was $32 billion with a market capitalization of $9.8 billion, resulting in a poor debt-to-equity ratio of 335.0% [10] Resilience During Economic Downturns - MGM stock has historically performed worse than the S&P 500 during downturns, with significant declines during events such as the COVID-19 pandemic and the global financial crisis [11][12] - The stock dropped 46.1% during the inflation shock of 2022, compared to a 25.4% decline for the S&P 500 [12] Summary of Current Situation - Despite long-term prospects from BetMGM and expansion in Japan, immediate risks outweigh benefits at current valuations, leading to an unattractive assessment of MGM stock [13] - Overall performance metrics indicate very strong growth potential but very weak profitability, financial stability, and downturn resilience [16]

Financial Performance - MGM Resorts International 的股票上涨，原因是该公司及其在伦敦上市的 Entain 公司提高了他们共同拥有的 BetMGM 体育博彩和 iGaming 运营商的全年展望 [1]

Financial Data and Key Metrics Changes - The company reported a strong quarter with notable financial results, including a $200 million EBITDA enhancement plan in motion, with expectations to implement over $150 million in 2025 [10][23] - BetMGM reported a 34% increase in net revenue from operations and an EBITDA of $22 million, representing an improvement of over $150 million from the prior year [14][20] - The company repurchased nearly 15 million shares for about $494 million in the first quarter, with an additional 8 million shares repurchased in the second quarter to date for $215 million [24] Business Line Data and Key Metrics Changes - MGM China maintained a mid-teen market share, ending the quarter at 15.7%, with a dividend payout policy increased to 50% of distributable profits [13][20] - The regional properties experienced a modest decline in revenue due to inclement weather, but ended the quarter strong with record slot wins in March [12][19] - MGM Digital made progress with the launch in Brazil, showing early traction with healthy retention rates [14][21] Market Data and Key Metrics Changes - Las Vegas operations showed resilience with record hotel occupancy and strong demand, particularly from the Marriott partnership, which booked over 440,000 room nights in April [11][29] - Airline capacity at Harry Reid Airport remains at record levels, with domestic flight capacity up 2% from April to June [11] - Macau's market share remained stable, with strong operational efficiency and a focus on maximizing asset utilization [19][78] Company Strategy and Development Direction - The company is focused on leveraging its luxury offerings and regional operations to drive growth, with significant investments in digital businesses and future projects in Japan and New York [25][16] - The partnership with Marriott is expected to enhance customer acquisition and drive omnichannel opportunities, particularly with BetMGM [9][29] - The company is committed to continuous improvement and cost management, with a focus on enhancing EBITDA through revenue actions and cost savings [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of Las Vegas and the company's ability to adapt to varying economic conditions [10][25] - The operating environment is expected to remain stable, with key metrics in line with expectations, and April projected to be a record month for hotel operations [12][28] - The company remains optimistic about future growth opportunities, particularly in Japan and the digital space, while maintaining a solid balance sheet [16][25] Other Important Information - The company has a strong liquidity position, with a new revolving credit facility providing $3 billion of liquidity [20] - The company is actively managing labor costs and has seen a reduction in full-time employees across regions [37][38] - The company is focused on maximizing marketing efficiency and customer engagement through digital channels [67] Q&A Session Summary Question: Can you unpack the April performance in Las Vegas regarding major KPIs? - Management noted that April is shaping up to be a record month, with strong hotel occupancy and group performance, aided by the Marriott partnership [28][29] Question: How is the company compensating for the soft inbound from Canada? - Management indicated that the higher-end business is not significantly impacted, with strong performance from Marriott blocks and casino operations [32][34] Question: Are payroll and labor increases related to the $150 million cost management initiative? - Management confirmed that the labor cost management efforts are ongoing and reflected in the current payroll increases [37] Question: What is the status of the Japan project and its budget? - The equity commitment for the Japan project is approximately $428 billion yen, with contributions expected over the next four years [55] Question: How does the company view share repurchases in light of increasing CapEx? - Management indicated a potential decrease in share repurchases as CapEx ramps up, but remains open to leveraging for strategic opportunities [72][73] Question: What is the impact of tariffs on the development pipeline? - Management stated that the impact of tariffs on the development pipeline is expected to be minimal, with most purchases already completed [82] Question: How is the company managing the impact of tariffs on operational costs? - Management noted that they have alternatives for consumables subject to tariffs and do not foresee significant impacts on development ambitions [82] Question: What are the next steps for the Dubai hotel project? - Management is awaiting decisions from local authorities regarding gaming opportunities while progressing with the hotel construction [88]