MGM Resorts posts mixed Q2 figures, highlights Osaka progress and Macau recovery

MGM Resorts International reported its second-quarter 2026 earnings, revealing growth in Las Vegas Strip and digital segments but declines in regional operations and consolidated adjusted EBITDA. The company’s net income soared to $292 million from $49 million in the prior-year period, while consolidated revenue edged up 1% year-on-year to $4.5 billion. Consolidated adjusted EBITDA fell to $610 million from $648 million in 2025.

Osaka project on track for 2030 opening

CEO Bill Hornbuckle expressed strong confidence in the MGM Osaka resort, which remains on schedule and budget for a fall 2030 debut. During the earnings call, Hornbuckle noted that underground work is advancing well, with over 60% of foundation piles already completed. Above ground, main structure concrete placement and steel fabrication are progressing. He described the project as “the greatest greenfield opportunity in the world” and said the company’s future has “never looked brighter.”

CFO Jonathan Halkyard reinforced that message, stating funding commitments for the second half of 2026 would be approximately $125 million to $175 million. MGM has spent $600 million on Osaka to date and expects to deploy $1 billion by 2027 and 2028, fully meeting its capital obligations. Halkyard also noted that the operator repurchased around 4.3 million shares for $164 million during the quarter, reducing its share count by nearly 50% over five years.

Macau bounces back after World Cup dip

Across Asia, MGM China posted revenue of $1.1 billion for the quarter, flat compared to the same period last year. However, MGM Macau saw a year-on-year decline in June as the FIFA World Cup impacted visitor volumes and gaming activity. July has brought a strong recovery, with the company reporting that market-wide gaming revenue has returned to first-quarter levels.

Kenneth Feng, CEO of MGM China, attributed the rebound to pent-up demand. He said both visitation and business volumes have picked up sharply since the second week of July, with weekly performance improving week-over-week. Feng added that MGM’s own property visitation and normalized GGR have already exceeded Q1 numbers, and a busy summer lies ahead with events and concerts scheduled.

Q2 2026 segment breakdown

- Las Vegas Strip Resorts: Revenue rose 3% to $2.2 billion; segment adjusted EBITDA increased 3% to $735 million. - Regional Operations: Revenue declined 4% to $924 million; same-store revenue was up 3% to $904 million. Segment adjusted EBITDAR fell 9% to $280 million, while same-store EBITDAR was flat at $271 million. - MGM China: Segment adjusted EBITDAR dropped 15% to $257 million, and intercompany branding licence fee expense rose by $21 million. - MGM Digital: Revenue jumped 20% to $196 million, though segment adjusted EBITDAR posted a loss of $31 million (compared to a $26 million loss in 2025).