MGM Resorts International

What they do

MGM operates 16 domestic casino properties and two in Macau through its 56% stake in MGM China, and develops MGM Osaka in Japan via a 50% stake. It leases domestic real estate under triple-net leases and runs global online gaming through LeoVegas and its 50% interest in BetMGM. Revenue is primarily cash-based from casino wagering, rooms, food and beverage, entertainment, and digital operations.

Revenue drivers

• Las Vegas Strip Resorts — Largest segment, $2.17B revenue in Q2 2026 (3% YoY growth), driven by casino, rooms, and food/beverage; Segment Adjusted EBITDAR $735M.
• Regional Operations — Revenue $924M in Q2 2026 (down 4% YoY, but same-store revenue up 3% to $904M); all-time best same-store quarterly revenue, adjusted EBITDAR $280M.
• MGM China (Macau) — Revenue $1.1B in Q2 2026, relatively flat YoY; Segment Adjusted EBITDAR $257M (down 15% due to higher intercompany branding fees).
• MGM Digital (LeoVegas & other) — Revenue $196M in Q2 2026, up 20% YoY; Segment Adjusted EBITDAR loss of $31M, wider than prior year loss.

Recent performance

In Q2 2026, consolidated revenue was $4.45B, up 1% YoY, and net income attributable to MGM was $292M vs $49M a year ago. Diluted EPS was $1.11 (adjusted EPS $0.59). Operating income rose 24% due to a $287M gain from selling MGM Northfield Park operations, partially offset by a $111M goodwill impairment. For H1 2026, revenue rose 3% to $8.91B and net income attributable to MGM was $418M.

Strategy

The company continues an asset-light model, monetizing real estate (e.g., selling MGM Northfield Park operations for $546M) and redeploying capital to growth. It is investing in U.S. online sports betting and iGaming via BetMGM and expanding global digital via LeoVegas. MGM Osaka, described as the largest integrated resort in the world, is on track for a 2030 opening. Management emphasizes disciplined capital allocation to drive returns, including luxury Las Vegas offerings.

Risks

• High debt and lease burdens — Substantial long-term debt ($6.07B) and significant rent payments under triple-net leases, plus guarantees of landlord debt, could strain cash flow and limit flexibility.
• Competition in online gaming — Increased competition in sports betting and iGaming could impact BetMGM and LeoVegas profitability and market share.
• Macau regulatory and economic exposure — MGM China's revenue depends on Macau gaming regulations, Far East baccarat volumes, and regional economic conditions, which can be volatile.
• No regular dividends — The company has suspended regular dividends and may not resume them, limiting shareholder returns.

Outlook

Management expects continued momentum from Las Vegas Strip Resorts and Regional Operations, with MGM Digital growing strongly. The MGM Osaka development is progressing toward a 2030 opening, and they see meaningful growth capital opportunities in Las Vegas. The company will continue to divest assets and reduce rent obligations, as seen with the Northfield Park sale, to strengthen the balance sheet.