MGM Resorts Posts Third-Quarter Loss as Las Vegas Softens

MGM Resorts reported an adjusted third-quarter loss of $0.11 per share, well short of the consensus for a $0.15 profit. Revenue of $4.21 billion was down 0.9% from a year earlier and slightly below the $4.25 billion expected. Consolidated adjusted EBITDA fell 20.4% to $403 million.

The Las Vegas Strip was the main drag: revenue fell 2% to $1.95 billion, average daily rate and RevPAR each dropped 8%, and adjusted EBITDAR declined 12%. Occupancy held at 89%, and management noted a rebound in October. Regional operations fell 8%, partly due to the April sale of Northfield Park.

There were brighter spots. MGM China set a quarterly revenue record of $1.14 billion with a record 17.1% market share, and the digital segment narrowed its loss. BetMGM contributed $34 million in distributions and fees, and the company ended the quarter with $2.40 billion in cash.