Due to the "accidental leak" of performance data, MGM Resorts International had to release its Q4 and full-year financial reports for 2025 a week early. The report shows that the group's growth was mainly driven by the Macau operations and digital division, while the domestic business on the Las Vegas Strip continued to be weak, and regional markets were basically flat. In the fourth quarter, the group's net revenue reached $4.6 billion, a year-on-year increase of 6%; the annual revenue was $17.5 billion, a slight increase of 1.7%. However, the market's focus was clearly not on this "passively disclosed" report card, but on why Las Vegas "stalled" and how MGM is responding. Analysts repeatedly asked questions during the conference call, although the CEO repeatedly expressed optimism, doubts were not completely dispelled.
Performance Divergence: A Tale of Two Business Realms
This financial report clearly depicts the "tale of two realms" within MGM's operations:
•Growth Engines—Macau and Digital: MGM China performed impressively, with fourth-quarter revenue of $1.2 billion, a significant increase of 21% year-on-year; adjusted EBITDAR reached $332 million, a surge of 30%. Digital business (mainly referring to LeoVegas) also grew by 35%, reaching $188 million, although it is still operating at a loss, the loss has narrowed.
•Drag Factor—Las Vegas: Las Vegas operations, both in the fourth quarter and annually, saw declines in revenue and profits. Fourth-quarter revenue fell 3% to $2.2 billion, and annual revenue fell 4% to $8.4 billion. The CEO admitted that 2025 was indeed challenging compared to the "astonishing" 2024.
•Stabilizer—Regional Markets: The performance of the U.S. regional markets was stable, with a slight increase of 2% in fourth-quarter revenue to $950 million, and profits remained stable, acting as a "ballast stone".
The Las Vegas Dilemma and Future Bets
The predicament of Las Vegas was the absolute focus of this earnings report. The company attributed it to overall declines in tourist volumes, shortened booking cycles, and other major environmental challenges. To regain competitiveness, MGM is betting on two things:
Asset Upgrades: The $300 million renovation of the MGM Grand Hotel on the Strip, completed last November, is expected to attract more visitors.
Major Events: The return of North America's largest construction show, CON/AGG (which last attracted 139,000 participants), in early March, is seen as an important short-term catalyst.
The COO indicated that the market is showing signs of stabilization and expressed encouragement over the positive response to major events. Additionally, the company is excited about the potential plans to build a second "Sphere Theater" near its "National Harbor" casino, believing it could bring in millions more visitors annually.
Strategic Contraction and Long-Term Growth Points
Facing a complex market environment, MGM also demonstrated strategic prudence. Last fall, the company unexpectedly withdrew from the competition for a New York state gaming license, opting to maintain its existing racetrack business in Yonkers and sold its racetrack in Ohio. This conservative move is interpreted as prioritizing the stability and cash flow of regional operations while pursuing growth. The company's biggest long-term bet is now on the integrated resort project in Osaka, Japan, expected to open in 2030. Meanwhile, its joint venture with Entain, BetMGM, achieved its best performance in 2025 and returned $135 million to MGM in the fourth quarter, demonstrating the cash-generating potential of the digital joint venture sector. Although analysts have varying views on the timing and extent of Las Vegas's recovery, MGM is trying to find a balance between short-term challenges and long-term opportunities through diversified business layouts and selective investments. The transformation journey of the global integrated resort group and the regional market competition remain key industry focuses. For more in-depth analysis of giant financial reports and market trends, please follow the PASA official website.
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