Growth in China and Las Vegas propels MGM to $4.38 billion

In the three months ending March 31, the group recorded a 13.2% increase in turnover compared to the previous year. This growth was driven by MGM's strong performance in China and Las Vegas, which offset declines in regional business.

Although Las Vegas remains MGM's primary source of revenue, revenue from casinos experienced a slight decline in the first quarter. However, this decline was largely offset by a 10.0% increase in hotel revenue, leading to a new quarterly high in revenue.

In China, records were also set, with revenue reaching an all-time high in the first quarter. Since all pandemic restrictions were lifted in early 2026, MGM continues to enjoy sustained growth and recovery in this market.

In contrast, the regional business, which includes the BetMGM joint venture with Entain, has struggled. Bad weather conditions in the United States had a negative impact on sales in the first quarter. Nonetheless, the outlook is optimistic for the future, with current growth and prospects encouraging.

Bill Hornbuckle, CEO and Chairman of MGM, expressed his satisfaction with these results: “When we talk about a record first quarter, and if you look at the recent reports, we are very excited and pleased. This speaks to the diversity of our business and our four main pillars: Las Vegas, our regional properties, Macau, and ultimately, our digital business. »

MGM aims for autonomous expansion in digital domain

Hornbuckle highlights BetMGM's vision for its digital segment, highlighting its ultimate goal of achieving autonomy, with all products and features developed in-house.

In the first quarter, BetMGM saw further growth, marking the brand's launch in North Carolina in partnership with Charlotte Motor Speedway. Hornbuckle also highlighted the successes of BetMGM in the UK, while noting an improving situation with LeoVegas in Sweden, which he said is rebounding.

Separately, this week, BetMGM announced its expansion into the Netherlands as part of its continued growth strategy.

Hornbuckle commented: “There was a license renewal process which had considerable costs for all parties, including us, and this was their main market. So LeoVegas is on the mend. BetMGM UK, which we covered last quarter, is doing exceptionally well. We have firmly established our presence there. This is an area that fascinates us. And yesterday we launched BetMGM in the Netherlands for the first time, softly.

Overall, our digital strategy remains unchanged. Our goal is to eventually become self-sustaining, developing all of the site's features, including producing our own games and products. »

MGM Casino Revenue Tops $2.24 Billion in First Quarter

Looking in detail at the first quarter's performance, the majority of MGM's revenue came from casino operations across all regions, seeing a significant increase of 19.1% year-over-year to $2.24 billion.

Room revenue also saw a 12.7% increase, reaching $956.4 million, while food and beverage revenue increased 6.6%, to $769.4 million. Revenue from entertainment, retail and other sources fell slightly by 1.3%, totaling $404.4 million, but MGM also recorded expense reimbursements totaling $12.2 million.

Regarding performance by segment, Las Vegas Strip revenues reached $2.26 billion, recording an increase of 3.6%. Casino revenue fell slightly to $498 million, due to a decrease in the number of slots and associated winnings, but this decline was offset by an increase in the number of table games and resulting winnings.

Las Vegas hotel revenue increased 10.0% in the first quarter to $827 million. The occupancy rate increased from 92.0% to 93.0%, while the average daily rate also increased to $277.

In terms of regional operations, revenues decreased by 4.5% to $685 million. Revenue from table games and slots both declined from the previous year, with slots seeing the biggest decline. MGM attributes the decline in part to poor weather conditions in some U.S. Markets in the first quarter.

The impact of the sale of Gold Strike Tunica on comparable results

Looking at Q1 expenses, operating costs increased by 27.2%, amounting to $3.90 billion. MGM's biggest expense items were casino costs, totaling $1.27 billion, followed closely by general and administrative expenses, totaling $1.19 billion.

MGM also recorded $115.0 million in additional non-operating expenses, including $110.0 million in interest expense. As a result, the group posted a pre-tax profit of $343.4 million, down 46.8% from the previous year.

This decrease is partly attributable to the impact of the sale of the Gold Strike Tunica Resort operations in Mississippi to CNE Gaming Holdings in September 2026, which generated additional revenue for MGM in the same period last year.

For the first quarter of this year, MGM paid $43.7 million in income taxes and recorded an $82.3 million loss from non-controlling interests. This resulted in net income of $217.5 million, down 53.4% ​​from Q1 2026, partly due to the Gold Strike Tunica deal.

As for consolidated adjusted EBITDA, it came to $1.23 billion, with no comparison figure provided.

“In conclusion, you've heard me use this term in the past, and I think probably more than any other quarter, it came up in this quarter, the term diversification of our products and our business,” Hornbuckle said.

“It is clear that Macau has made a lot of progress this quarter. Las Vegas maintains its position. The regions are showing signs of recovery. And the digital business is fully funded, so we look forward to what it will bring in the long term. »

Analysts remain “optimistic” on MGM

In the first quarter, MGM's EBITDA beat Macquarie Group analysts' expectations by 2%, while MGM shares currently trade at around 5.7 times what the group forecast for MGM's EBITDA in 2026. Additionally, MGM's EBITDA for the first quarter was 3% above Truist Securities' expectations and 5% above Wall Street estimates. Net revenue also beat Truist and Wall Street forecasts.

Macquarie highlighted MGM's 58% exposure to Las Vegas as a key factor in maintaining its "bullish" outlook on the company's performance, noting that MGM owns more land on the Las Vegas Strip than any other operator.

“In Vegas, MGM is at the heart of the world of sports and entertainment and stands out for its luxury offering,” Macquarie said in its analyst notes.

Truist said MGM China “exceeded expectations,” beating Truist’s first-quarter EBITDA estimates by 6%. Truist also projects "steady" growth in MGM's land operations, with an increase in Las Vegas through its partnership with hotel giant Marriott International.

Meanwhile, Macquarie highlighted MGM's strong balance sheet and ambitions to become a global digital leader as reasons for confidence in the company's future, emphasizing that it is well positioned to expand its digital businesses, as well as in New York and Japan.

Truist maintained its "Buy" recommendation for MGM, making few major changes to its estimates, with only minor adjustments to its model. Truist and Macquarie price targets were maintained at $58.

However, Macquarie highlighted high marketing expenses and rising costs to maintain market share in the United States as potential risks for the company going forward.