MGM Resorts International Q2 Earnings Call Highlights

MGM Resorts International NYSE: MGM said its second-quarter momentum was supported by record consolidated net revenue, continued growth at its Las Vegas Strip properties, record same-store regional revenue and 20% year-over-year revenue growth at MGM Digital. Chief Executive Officer and President Bill Hornbuckle said the company’s board continues to evaluate an offer from People Incorporated through a special committee of independent directors. Hornbuckle said he and Chief Financial Officer Jonathan Halkyard would not address the proposal during the question-and-answer session.

Hornbuckle said the company entered the second half with positive momentum across Las Vegas, regional casinos, Macau and digital operations, while construction of its Osaka integrated resort remains on schedule for a fall 2030 opening.

In Las Vegas, MGM reported year-over-year growth in both net revenue and segment adjusted EBITDA during the second quarter. Halkyard said Strip-resort EBITDA was up $25 million year to date, primarily reflecting a recovery at MGM Grand following room renovations and a favorable hold benefit. 3 Bargain Stocks the Market Is Sleeping on Right Now Group and convention business accounted for 20% of MGM’s room mix during the quarter, keeping the company on pace for that segment to represent 20% of full-year room mix, Hornbuckle said. Technology and hospitality corporate groups, business-to-business trade shows and professional association meetings helped drive the company’s highest second-quarter convention average daily rate, as well as record catering and banquet revenue. Hornbuckle said April and May were strong, with May benefiting from events and other activity. June was more challenging as summer conditions intensified, though July had been favorable. MGM expects a solid third quarter supported by group business and a larger citywide event calendar, while Hornbuckle said the company has “some work to do” in the fourth quarter.

Chief Operating Officer Ayesha Molino said luxury properties and the group segment remained strong, while the lower end of MGM’s Las Vegas portfolio, particularly Luxor and Excalibur, remained challenged but had stabilized. MGM’s all-inclusive offering at Luxor and Excalibur has booked more than 30,000 room nights since its launch four months ago, according to Hornbuckle. Nearly half of guests booking the offer were first-time MGM visitors. Molino said the package has supported occupancy, generated higher weekend rates, and delivered a favorable margin profile. The company is also seeking to draw more local customers to Park MGM through food-and-beverage, parking and free-play offers. Molino cited the resort’s proximity to T-M...