MGM's Las Vegas Strip Room Rate Falls 8% To $218, Pulling Adjusted Profit Down To $403 Million
The casino operator's net loss narrowed to $17 million, but consolidated Adjusted EBITDA fell from $506 million, and CEO Bill Hornbuckle says October rebounded.
MGM Resorts, the casino and hotel operator, said in an 8-K filed Wednesday that consolidated Adjusted EBITDA fell to $403 million in the third quarter from $506 million a year earlier, even as its net loss narrowed to $17 million from $285 million. CEO Bill Hornbuckle blamed lower Las Vegas room rates and said October "has rebounded favorably."
Strip rates drag the core measure
Revenue came in at $4.2 billion, down 1% from a year earlier. Adjusted EBITDA is the company's own measure of operating profit before items such as depreciation and property transactions. Adjusted earnings per share were a loss of $0.11, against earnings of $0.24 a year ago. The diluted loss per share was $0.07, versus $1.05.
The Las Vegas Strip segment's Adjusted EBITDAR, its main profit gauge, fell 12% to $531 million from $601 million. Average daily room rate slid 8% to $218 while occupancy held at 89%, and room revenue fell 6% to $622 million. Casino revenue on the Strip rose 8% to $488 million, helped by table games win of 17% more.
The narrower net loss owes much to last year's third quarter, which carried a $256 million goodwill impairment (accounting write-down) that did not recur. Operating income was $119 million, against an operating loss of $113 million a year earlier.
China record, regional softness
MGM China posted record quarterly revenue of $1.1 billion, up 5%, and a record market share of 17.1%. Its Adjusted EBITDAR still fell 7% to $264 million, with a branding license fee that rose $22 million from the prior-year quarter.
Regional Operations revenue was $883 million, down 8%, but up 1% on a same-store basis (adjusted for the sale of MGM Northfield Park). Its Adjusted EBITDAR fell 18% to $243 million, or 7% on a same-store basis. MGM Digital, mainly the LeoVegas online gaming business, grew revenue 6% to $184 million and cut its segment loss to $4 million from $23 million.
BetMGM North America Venture distributions and branding license fees paid to MGM totaled $34 million.
Buybacks and the Osaka pipeline
Chief Financial Officer Jonathan Halkyard said an amended voting agreement announced earlier Wednesday gives MGM a "highly supportive framework" to pursue share repurchases. He pointed to the company's buyback of nearly half its shares over the past five years.
MGM had 251.6 million shares outstanding at September 30, down from 258.3 million at year-end, and long-term debt of $5.7 billion, down from $6.2 billion. Management holds a call at 5:00 p.m. ET Wednesday.
Hornbuckle also pointed to MGM Osaka as the growth pipeline meant to drive future value.
Sources
- 8-K Filing — MGM Resorts International (MGM) — SEC EDGAR
- Exhibit mgmex991q32026earningrelea.htm — MGM Resorts International 8-K exhibit — SEC EDGAR
- MGM RESORTS INTERNATIONAL REPORTS THIRD QUARTER 2026 FINANCIAL AND OPERATING RESULTS — prnewswire.com
