MGM Resorts Strip Profit Falls 12% on Room Rates as MGM China Posts a Record

Lower room rates cut MGM Resorts' Las Vegas Strip earnings by 12% in the third quarter, while MGM China posted record revenue and a record share of Macau. With the People Inc. bid gone, management turned to buybacks and to roughly $1 billion a year of spending on MGM Osaka in 2027 and 2028.

• MGM Resorts International reported a net loss attributable to the company of $17 million for the third quarter, against $285 million a year earlier, on consolidated revenue down 1% to $4.21 billion
• Las Vegas Strip Resorts segment adjusted EBITDAR fell 12% to $531 million as the average daily rate dropped 8% to $218, with occupancy unchanged at 89%
• MGM China lifted revenue 5% to $1.14 billion, a quarterly record, and the company says its Macau market share reached a record 17.1%
• MGM bought back no shares in the quarter, Chief Financial Officer Jonathan Halkyard said on the call, although he says the amended People Inc. voting agreement now lets it pursue them
• Halkyard said MGM expects to put about $1 billion into MGM Osaka in each of 2027 and 2028, which he said completes its funding commitment

Room Rates, Not Visitor Numbers, Cut the Strip's Earnings

MGM Resorts International (NYSE: MGM) reported consolidated revenue of $4.21 billion for the quarter to 30 September 2026, against $4.25 billion a year earlier, according to its earnings release filed with the US Securities and Exchange Commission on 28 October. Consolidated adjusted EBITDA fell 20% to $403 million. The narrower net loss of $17 million reflects the year-earlier quarter, which carried a $256 million goodwill impairment and a $102 million charge for property transactions.

Las Vegas Strip Resorts revenue slipped 2% to $1.95 billion and segment adjusted EBITDAR fell 12% to $531 million from $601 million. Occupancy held at 89%, but the average daily rate fell 8% to $218 and revenue per available room 8% to $193, cutting room revenue 6% to $622 million. Casino revenue rose 8% to $488 million, helped by table games win of 25.3% against 22.6%. President and Chief Executive Bill Hornbuckle said in the release that lower room rates had hit the quarter and that October "has rebounded favorably". On the call he said airline pricing to Las Vegas was up about 45% on the previous summer, and Halkyard said rates were down by mid single digits in August and high single digits in September.

Caesars Entertainment reported a similar picture a day earlier, with Las Vegas adjusted EBITDA down 9.5% and occupancy down to 89.1% from 91.6%, which it blamed on fewer conventions and lower leisure visitation.

Macau Grows, Regional Shrinks After a Sale

MGM China revenue rose 5% to $1.14 billion, while its segment adjusted EBITDAR fell 7% to $264 million. The release says an intercompany branding licence fee paid by MGM China to its parent rose by $22 million to $41 million, a cost that eliminates in MGM Resorts' consolidated accounts. MGM China's revenue gain came as the market shrank: Macau's casino gross gaming revenue fell 3.8% in the third quarter, according to the Gaming Inspection and Coordination Bureau.

Regional Operations revenue fell 8% to $883 million and segment adjusted EBITDAR 18% to $243 million, after the sale of MGM Northfield Park on 21 April. On a same-store basis revenue rose 1% and EBITDAR fell 7%.

Digital Improves While BetMGM Pays Out

MGM Digital, which comprises LeoVegas and other online subsidiaries but not BetMGM, grew revenue 6% to $184 million and narrowed its segment adjusted EBITDAR loss to $4 million from $23 million. Distributions and branding licence fees paid to MGM by the BetMGM North America Venture came to $34 million, and MGM's share of BetMGM's operating income rose to $26.7 million from $23.7 million. BetMGM published its own quarterly figures on 13 October.

On People Inc., Hornbuckle told analysts that People was unable to assemble a syndicate that met its objective and withdrew its offer. "The discussion between MGM and People ends there," he said.

MGM Defended Occupancy and Paid for It in Rate

The two Strip operators lost earnings in different ways. Caesars lost occupancy, while MGM kept its rooms 89% full and accepted an 8% lower rate to do so, which cost $38 million of room revenue. Higher table hold flattered the casino line at both companies. MGM's executives point to a better October, but neither gave a figure for the fourth quarter, and higher airfares are not something an operator can change.

Macau Is Doing More of the Work

A 5% revenue gain in a market that fell 3.8% is a clear share win, and MGM China supplied the largest revenue gain of any segment this quarter. The segment's lower EBITDAR partly reflects the higher branding fee, which moves money from MGM China, where outside shareholders own a minority, to the parent. The group therefore looks stronger than MGM China's own figures suggest.

Buybacks and Osaka Now Draw on the Same Cash

Halkyard said MGM chose not to repurchase shares in the quarter because of the circumstances surrounding the company, and that about $1.4 billion remains under its authorisation. He said the company has spent about ¥114 billion on Osaka to date and expects ¥150 billion to ¥160 billion, about $1 billion, in each of 2027 and 2028. Hornbuckle said the project is about 11% complete and on time and on budget for a 2030 opening. Consolidated cash was $2.40 billion at the end of September, so the buybacks Halkyard says the People agreement enables will compete with Osaka for the same money over the next two years.

On MGM's figures the Strip's problem this quarter was price, not demand, and MGM's own October comments suggest a recovery has started. Whether it can fund buybacks and Osaka at the same time depends on that recovery and on Macau keeping its share.