MGM Continues Takeover Review As Quarterly Profit Rises

MGM Resorts International is reviewing an all-cash takeover proposal from People Incorporated while reporting higher revenue and net profit for the second quarter.

People Incorporated, formerly known as IAC, submitted the offer in early June. The proposal values MGM at $18bn and would pay $48.30 for every share it does not already own. People Incorporated currently holds 26.1% of MGM’s outstanding common stock.

Speaking during MGM’s earnings call, president and chief executive Bill Hornbuckle confirmed that the operator had formed a special committee to assess the proposal. It consists of independent directors with no affiliation or association with People Incorporated.

Hornbuckle declined to indicate whether MGM supported the offer but said the review was continuing.

“The committee continues to evaluate the proposed transaction in consultation with independent outside advisors,” he said. “I’m confident our board will pursue the course of action that’s in the best interest of the company and our shareholders.

“I don’t have anything more to share at this time.”

Digital and Las Vegas growth lift second-quarter revenue

MGM reported consolidated revenue of $4.5bn for the three months to 30 June, up 1% from last year.

MGM Digital delivered the strongest growth, with revenue increasing 20% to $196m. However, its adjusted EBITDAR loss widened from $26m to $31m. The division includes LeoVegas but excludes BetMGM, which reports separately.

Las Vegas Strip Resorts is still the group’s largest division. Revenue increased 3% to $2.2bn, supported by stronger casino and entertainment activity, higher hotel occupancy and improved room rates.

Regional Operations revenue fell 4% to $924m because of lower casino revenue, although non-gaming growth provided some support. MGM China generated $1.1bn in revenue, unchanged year-on-year, while adjusted EBITDAR declined 15% to $257m.

Across the group, casino revenue rose 2% to $2.38bn. Food and beverage revenue increased 3% to $802.3m, while rooms revenue declined 1% to $849.1m. Entertainment, retail and other revenue fell 5% to $416.3m.

Lower costs and expenses drive significant profit increase

Adjusted EBITDA declined 6% to $610m despite the revenue increase. However, lower operating costs, reduced non-operating expenses and a smaller tax charge supported a steep improvement in profit.

Operating costs decreased 1%, while operating profit rose 24% to $503.6m. Non-operating expenses fell 67%, helping pre-tax profit increase 209% to $413.5m. After income tax expenses of $90.7m, MGM reported net profit of $322.8m, up 173%. Net profit attributable to MGM reached $292.4m after non-controlling interests, representing a 497% increase from Q2 2025.

For the first half, revenue increased 3% to $8.91bn, although adjusted EBITDA declined 7% to $1.19bn. Operating profit rose 2% to $804.9m, while pre-tax profit increased 54% to $615.8m. Net profit reached $497.6m, up 44%. Profit attributable to MGM increased 111% to $417.7m.

“MGM once again demonstrated the strength of our diversified portfolio with record Q2 consolidated revenue driven by a second consecutive quarter of year-over-year revenue growth for Las Vegas Strip Resorts, all-time best Regional Operations same-store quarterly revenue, and 20% year-over-year revenue growth at MGM Digital,” Hornbuckle said.

MGM Osaka stays on schedule for its 2030 opening

MGM updated investors on its integrated resort project in Osaka, confirming construction is on time and within budget for a planned 2030 opening.

Hornbuckle said more than 60% of the foundation piles had been completed, while concrete placement and structural steel fabrication were progressing above ground.

“The underground work is progressing nicely with over 60% of foundation piles completed,” he said on the call. “Above ground, the property’s main structure is taking shape with ongoing concrete placement and structural steel fabrication.

“We remain on time and on budget as the only licensee in Japan for what we consider the greatest greenfield opportunity in the world.”

The Osaka development is central to MGM’s expansion.

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