MGM China reached a new quarterly revenue record of $1.1 billion, while segment EBITDAR fell 7%. MGM China also hit a record 17% share of Macau gross gaming revenue.
MGM China reported record Q3 revenue of $1.1 billion, a 5% increase, with segment adjusted EBITDAR falling 7% to $264 million. MGM China finished the quarter with a record 17% share of Macau gross gaming revenue. MGM’s People Inc takeover talks were formally ended in September after the offer was rescinded.
- MGM China’s Record Quarter
- Margin Pressure Behind the Profit
- The Osaka Bet in Japan
- Regional and US Weakness
MGM China posted $1.1 billion in revenue for the third quarter, a 5% increase and a new quarterly record. The figure arrives as MGM’s takeover talks with People Inc, the Diller family vehicle, were formally ended. MGM CEO Bill Hornbuckle told analysts that the companies have agreed to stop discussing the buy-sell saga entirely.
People Inc made an offer to buy 74% of MGM’s shares at $48.30 each in June. The offer was withdrawn on 23 September, after which MGM said it might buy People instead. That possibility is now off the table too. An amended voting agreement was struck before Wednesday’s call, with Arden Consult People agreeing not to hold more than 29.9% of MGM and MGM agreeing not to take defensive actions against it.
MGM China’s Record Quarter
MGM China reached $1.1 billion in revenue, up 5% year over year, and lifted its share of Macau gross gaming revenue to 17%. Both are record levels for the operator. The result reinforces the pattern the group has been posting: revenue keeps growing even as margins compress. MGM China’s segment adjusted EBITDAR fell 7% to $264 million, a reflection of the shift in Macau away from high-roller gaming.
Kenneth Feng, MGM China’s chief executive, told analysts the margin issue has a long list of causes, including event calendars and high-end play. He said the group is focused on efficiency. The 17% Macau share result is especially notable. It came even as the wider Macau market softened and rivals pressed in on the high-roller side.
Margin Pressure Behind the Profit
The drop in MGM China’s segment EBITDAR reflects a structural shift in Macau rather than a single bad month. High-roller revenue and event calendars have both been soft. As a result, the group is carrying volume growth with lower-margin mix, and that is exactly the dynamic Macau regulators pushed for when the concession market was retendered in 2022.
The trade-off is visible. MGM China is growing revenue it can earn less from, while competitors that have invested heavily in high-roller floors compete for the segment that still delivers the strongest margins. As a result, MGM China’s headline revenue record is masking a softer profitability story, and investors tracking the operator will need to watch segment EBITDAR rather than the top line.
The Osaka Bet in Japan
MGM’s Osaka casino remains the standout strategic bet. The project is roughly 11% complete and is still on track for its 2030 opening, according to Hornbuckle. He called it the greatest integrated resort opportunity anywhere on the globe, and the operator has made the case that Osaka could outperform the established Macau and Singapore markets.
The investor presentation makes the Osaka argument concrete. MGM said Osaka is expected to draw more visitors than Marina Bay Sands in 2025, and its 6,400 projected gaming machines would exceed the combined count of MBS and MGM’s two Macau properties. In contrast, MGM China’s Macau strength came with margin pressure, so Osaka represents a long horizon where the high-roller mix might eventually work in MGM’s favour.
Regional and US Weakness
Las Vegas was the weakest part of MGM’s quarter. Segment revenue fell 2% to $2 billion, and segment adjusted EBITDAR dropped 12% to $531 million. Ayesha Molino, MGM’s chief operating officer, called the casino underperformance material and said the region needs relief on fuel, gas and airline pricing before the fourth quarter improves.
Regional revenue fell 8% to $883 million, with segment adjusted EBITDAR down 18% to $243 million. Casino revenue dropped 10% there, led by an 11% fall in slot win. The new 6,000-seat Sphere entertainment venue in Maryland sits beside MGM’s National Harbor casino, and Prince George’s County approved up to $215 million in public financing for it, expected to cost $1.4 billion and open in 2030.
Frequently Asked Questions
What happened with MGM’s People Inc deal?
People Inc offered to buy 74% of MGM’s shares at $48.30 in June, then rescinded the offer on 23 September. MGM CEO Bill Hornbuckle confirmed that the buy-sell talks are over, with both companies agreeing to stop discussing a transaction. An amended voting agreement now limits People to 29.9% of MGM.
How did MGM China perform in Q3?
MGM China reported record revenue of $1.1 billion, up 5% year over year, while segment adjusted EBITDAR fell 7% to $264 million. Its share of Macau gross gaming revenue hit a record 17%, as the group grows revenue at lower margins amid weak high-roller demand.
Why is MGM China’s profitability slipping?
The margin decline is driven by soft high-end play and thin event calendars in Macau. Revenue is growing, but the mix is shifting toward lower-margin gaming. Kenneth Feng told analysts the group is concentrating on efficiency as it waits for the high-roller segment to stabilise.
What is the status of MGM Osaka?
MGM Osaka is about 11% complete and remains on schedule for its 2030 opening, according to Bill Hornbuckle. The project targets 6,400 gaming machines and aims to attract more visitors than Marina Bay Sands in 2025, positioning it as a major new integrated resort market in Japan.
How does MGM’s stock react?
MGM shares fell 2.5% to $27.27 after Wednesday’s results, erasing much of the June takeover surge. The stock is down 25% this year and 42% over the last five years, reflecting a broader Las Vegas soft spot despite MGM’s 70% higher trailing Las Vegas EBITDAR versus 2019.
Is MGM’s debt a concern?
MGM closed Q3 with $2.3 billion in cash against $5.6 billion in total long-term debt. CFO Jonathan Halkyard said more than $1 billion of stock buy-back authority remained, with no repurchases made during the quarter amid the ended takeover discussions.
This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.
