MGM Resorts: Vegas Weakness Hurts Earnings, But Valuation Keeps Us Bullish
MGM Resorts reported a 1% decline in Q3 revenue as Las Vegas room rates fell 8%, while MGM China gained market share and BetMGM more than doubled quarterly adjusted EBITDA to $86 million. With the withdrawal of a potential acquirer removing an immediate takeover catalyst, an amended agreement gives MGM more flexibility to repurchase shares.
Why it matters — Investors tracking MGM will weigh pressure on Las Vegas profitability against gains in China and BetMGM, as well as the increased flexibility for share repurchases.