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# MGM CFO Says Investors Get Vegas And Regional Casinos 'For Free' At Today's Price
- URL: https://www.bullished.co/mgm-cfo-says-investors-get-vegas-and-regional-casinos-for-free-at-todays-price-aa19f7a6/
- Published: 2026-10-28T22:12:49.000Z
- Updated: 2026-10-29T15:18:37.000Z
- Description: Jonathan Halkyard says its China and BetMGM stakes alone are worth about $4.1 billion, less than three times domestic EBITDA.
- Author: Matteo Parrino
- Tags: Earnings, MGM, Industry: Consumer Discretionary

[MGM Resorts](https://www.bullished.co/tag/mgm/)' chief financial officer told investors on the company's earnings call that the stock price implies they get its Las Vegas and regional casinos "for free." Jonathan Halkyard said he was "compelled" to revisit the valuation, putting the MGM China and BetMGM stakes at roughly $4.1 billion \[CHECK\].

## The valuation argument

MGM Resorts, the casino and entertainment company that runs resorts in Las Vegas, regional U.S. markets and Macau, plus online gaming, reported a third-quarter loss. Halkyard, speaking on Wednesday's call, valued the MGM China stake at market and BetMGM North America at a consensus figure he called "very conservative." That yields roughly $4.1 billion, or less than three times trailing 12-month domestic adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).

The math assigns zero to MGM Digital and MGM Osaka. A conservative Osaka valuation, he said, "could easily exceed $4.1 billion," leaving investors the Las Vegas and regional operations, which he said reliably generate more than $1.5 billion in EBITDA, "for free."

He noted about $1.4 billion remains authorized under the share repurchase program. Asked by a JPMorgan analyst whether the company had been locked out of the market, he said MGM chose not to repurchase shares in the third quarter because of the circumstances surrounding the company, which he said are now concluded. He added that the company could take leverage up a little to capitalize on the dislocation.

## People Inc. chapter closes

CEO Bill Hornbuckle opened the call on the largest shareholder, People Inc., which made an offer in June. He said the two sides and MGM's special committee agreed on price, but People could not assemble a syndicate and withdrew. MGM amended its [voting agreement](https://money.usnews.com/investing/news/articles/2026-10-28/mgm-resorts-amends-voting-agreement-after-people-inc-withdraws-takeover-proposal?ref=bullished.co) to bar People from buying more shares once it reaches 29.9% and to commit it to vote with the board on a change of control. "We're done," Hornbuckle said later.

## Room rates and the Las Vegas dip

Halkyard blamed the decline in Las Vegas segment EBITDA on lower room revenue: a leisure-heavy mix pressured rates against similar occupancy. Hornbuckle cited record jet fuel prices in September, high gas prices and airline pricing to Las Vegas up about 45% in the third quarter from last summer.

Halkyard said room rates fell very low single digits in July, about mid single digits in August and high single digits in September. He said October looks more like July.

## Japan competes for cash

MGM has spent about 114 billion yen on MGM Osaka and plans to deploy roughly 150 to 160 billion yen, about $1 billion, in each of 2027 and 2028, completing its funding commitments. Halkyard said the opening remains on time and on budget for 2030, and that repurchases will be somewhat affected by the Japan spending. He said the company expects to fund it from cash on hand and free cash flow.

Hornbuckle said management's aim is to close the gap between the current market valuation and the true value of the enterprise.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

### Sources

- [MGM Resorts Amends Voting Agreement After People Inc Withdraws Takeover Proposal](https://money.usnews.com/investing/news/articles/2026-10-28/mgm-resorts-amends-voting-agreement-after-people-inc-withdraws-takeover-proposal?ref=bullished.co) — Reuters
- [MGM Resorts Nears 52-Week Low After Q3 Loss, Revenue Miss](https://www.benzinga.com/markets/earnings/26/10/62679091/mgm-resorts-nears-52-week-low-after-q3-loss-revenue-miss?ref=bullished.co) — benzinga.com
- [MGM: Q3 Earnings Snapshot | 9news.com](https://www.9news.com/article/syndication/associatedpress/mgm-q3-earnings-snapshot/616-7b679587-c2b0-44ec-acf2-27c460d1e740?ref=bullished.co) — Associated Press
- [Las Vegas casinos see tepid gaming win growth in September (MGM:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4658926-las-vegas-casinos-see-tepid-gaming-win-growth-in-september?ref=bullished.co) — seekingalpha.com
- [MGM Resorts, People Inc. to vote with MGM board on change of control (MGM:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4658905-mgm-resorts-people-inc-to-vote-with-mgm-board-on-change-of-control?ref=bullished.co) — seekingalpha.com

### More on MGM Resorts

- [MGM CEO Says Talks With Largest Shareholder Are Over: 'We Are Done'](https://www.bullished.co/mgm-ceo-says-talks-with-largest-shareholder-are-over-we-are-done-a35e2af6/)
- [MGM's Las Vegas Strip Profit Falls 12% As Payroll Climbs, And Asset-Sale Gains Prop Up The Nine Months](https://www.bullished.co/mgms-las-vegas-strip-profit-falls-12-as-payroll-climbs-and-asset-sale-gains-prop-up-the-052a46cc/)
- [MGM's Las Vegas Strip Room Rate Falls 8% To $218, Pulling Adjusted Profit Down To $403 Million](https://www.bullished.co/mgms-las-vegas-strip-room-rate-falls-8-to-218-pulling-adjusted-profit-down-to-403-million-091aaaa2/)

[All MGM Resorts (MGM) coverage →](https://www.bullished.co/tag/mgm/)