(AsiaGameHub) –   MGM Resorts leveraged robust performance in Macau and its digital division to achieve a marginal rise in group revenue for the first quarter, released Wednesday. While regional operations remained stable, Las Vegas posted its first year-over-year revenue gain since 2024.

The company reported net revenue of $4.5 billion in Q1, a 4% increase year-over-year. However, consolidated adjusted EBITDAR dropped 9% to $580 million, and net income fell 16% to $125 million. Every segment—Las Vegas, regional, China, and digital—saw YoY revenue growth. Conversely, adjusted EBITDAR declined across the board except for digital, which narrowed its loss from $34 million a year ago to $26 million this quarter.

Las Vegas generated $2.2 billion in Q1 revenue, a slight $4 million increase YoY, though segment adjusted EBITDAR decreased 8% to $749 million. Hotel revenue was virtually flat at $751 million, while gaming metrics like casino revenue (-5%), table games win (-1%), and slot win (-1%) dipped slightly.

Similar to Caesars’ presentation the previous day, MGM CEO Bill Hornbuckle and executives addressed multiple inquiries regarding Las Vegas, particularly concerning lower-end gaming activity affected by lingering tourism slowdowns.

“The market has evolved, and the consumer has changed. Fortunately, we possess a substantial amount of luxury inventory and brands capable of catering to this shift, and this trend will persist,” Hornbuckle told analysts. “Despite numerous headwinds, we have not yet observed a slowdown. That does not preclude the possibility of a slowdown over the summer, as booking cycles remain short.”

Analyst Jordan Bender of Citizens noted in a research note that conditions in Las Vegas appear to be moderately improving. Nevertheless, Citizens’ models forecast a 2% decline for MGM’s Las Vegas segment in 2026.

New deals, new NBA team?

In recent weeks, several operators, including MGM and Caesars, have started promoting all-inclusive packages to attract budget-conscious and first-time visitors. MGM’s offer features two-night stays at either the Luxor or Excalibur, which drew significant attention from analysts on Tuesday.

“We have been very pleased with the response to the all-inclusive package; we have observed consistent momentum since its launch, and customer feedback has been positive,” stated MGM COO Ayesha Molino. She added that a “significant portion” of this interest stems from new clients.

Hornbuckle was questioned about MGM’s position regarding a potential NBA franchise in Las Vegas, given the company’s stake in T-Mobile Arena, the city’s sole venue capable of hosting NBA games. The league’s board of governors unanimously voted last month to investigate Las Vegas as a relocation site, a possibility long rumored.

Although the prospective team owner might prefer constructing a custom arena, T-Mobile is becoming an increasingly probable interim solution. The NBA has expressed a desire for expansion teams to commence play as early as 2028, which is too early for a new venue. Hornbuckle, who joked he was “already under three NDAs,” suggested that developments are moving in that direction. “T-Mobile is part of the discussion, whether short-term or long-term, all paths currently lead to it… so we are deeply involved in those conversations,” he remarked. MGM has been “asked how to position T-Mobile for any and all bidders” and has received “extensive interest,” Hornbuckle noted.

Strength in Macau

MGM China experienced a 9% revenue increase to $1.1 billion in Q1, while adjusted EBITDAR dipped 4% to $273 million. The quarter encompassed the Chinese New Year holiday, which drove strong visitor numbers and a surge in overall betting handle. For MGM, Macau table games win surpassed $1 billion in Q1, an 18% rise compared to the previous year.

“It is always difficult to label Macau as ‘stable,’ but I feel optimistic; I feel very good about our market position, our strategy, and our execution,” Hornbuckle stated, acknowledging the company is still “under-equipped” in the market and plans to expand.

MGM Osaka, the sole integrated resort licensed in Japan, is progressing “on schedule and within budget for a 2030 opening,” Hornbuckle announced. Japan has recently initiated the process for potentially issuing additional casino licenses, but the company remains confident that its first-mover advantage will remain substantial even if competitors are awarded licenses.

Trimming digital losses

Digital revenue, derived from MGM subsidiary LeoVegas rather than BetMGM, climbed 43% YoY to $183 million. The segment also reduced its EBITDAR loss by approximately $8 million for the quarter. While MGM has faced scrutiny regarding its long-term vision for the BetMGM joint venture with Entain, there are signs that its own digital footprint is expanding as it moves toward profitability.

“We have previously indicated that we expect the digital segment’s loss to be halved this year relative to last year. We might see slightly more investment this year due to regulatory and tax changes in Brazil, but we are definitely anticipating the loss to narrow materially… which would set us up for a near break-even year in 2027, or potentially reaching it entirely,” said Gary Fritz, MGM chief commercial officer and president of digital.

From a balance sheet perspective, MGM reported total liabilities of approximately $38 billion, a figure that remained virtually unchanged from the previous year’s quarter. The company repurchased $90 million worth of shares in Q1, with the stock closing Wednesday down 1% at $39.27. Although MGM is up roughly 24% over the last 12 months, the stock remains well below its 2023 highs of around $50 per share.