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MGM Resorts International (NYSE:MGM) presented its first quarter 2025 results on April 30, highlighting significant achievements across its integrated resorts and digital operations. The company’s presentation revealed BetMGM’s first profitable quarter, continued share repurchases, and strategic expansion into new markets.
Executive Summary
MGM Resorts reported solid performance across its portfolio in Q1 2025, with Las Vegas Strip Resorts generating $2,255 million in net revenues and $828 million in adjusted EBITDAR at a 37.3% margin. Regional Operations contributed $900 million in net revenues and $279 million in adjusted EBITDAR, while MGM China (OTC:MCHVY) delivered $1,056 million in net revenues and $301 million in adjusted EBITDAR.
The company highlighted several key achievements during the quarter, including growth in Las Vegas casino revenue, increased slot win at regional properties, and mid-teens market share maintenance at MGM China.
As shown in the following summary of Q1 2025 highlights:
Digital Operations Milestone (WA:MMD)
The most notable development was BetMGM achieving positive EBITDA of $22 million, representing a year-over-year improvement of $154 million. BetMGM’s total net revenue from operations reached $657 million, up 34% year-over-year, with iGaming contributing $443 million (up 27%) and online sports betting generating $194 million (up 68%).
The company’s presentation revealed these impressive metrics for its digital operations:
MGM Digital, the company’s international online gaming and sports betting operation, continued its expansion with a launch in Brazil during Q1. However, this segment is still operating at a loss, with Q1 2025 adjusted EBITDAR at -$34.4 million on net revenues of $128.1 million.
The company outlined ambitious growth targets for MGM Digital, aiming for 1-5% market share in Europe (representing a $34 billion total addressable market) and over 10% market share in Brazil (a $7 billion market).
Segment Performance Analysis
MGM’s integrated resorts have shown remarkable growth since 2019, with Las Vegas Strip properties delivering 88% growth in segment adjusted EBITDAR, regional operations up 18%, and MGM China increasing by 46%.
The following chart illustrates this strong performance trajectory:
For Q1 2025 specifically, the company provided a detailed breakdown of operating segment performance, showing year-over-year improvements in margins across most segments:
This performance represents a continuation of the momentum seen in Q4 2024, when MGM reported stronger-than-expected earnings with EPS of $0.45, surpassing the forecast of $0.39, and revenue of $4.3 billion exceeding expectations of $4.28 billion.
Strategic Initiatives
MGM Resorts continues to execute on its global expansion strategy. The company held a groundbreaking ceremony for MGM Osaka on April 24 and plans to submit its New York Request for Application (RFA) in June 2025.
The company also reported that its EBITDA enhancement initiatives are on track to reach $200 million, with over $150 million expected to be implemented in 2025. These initiatives focus on both revenue enhancement and cost efficiencies.
Financial Position and Capital Allocation
MGM maintains a strong liquidity position with $6,212 million as of March 31, 2025, consisting of $2,474 million in cash, cash equivalents, and marketable debt securities, plus $3,728 million in revolver availability.
The company continues its aggressive share repurchase program, buying back 15 million shares for $494 million in Q1 2025 alone. Since the beginning of 2021, MGM has repurchased nearly 45% of its outstanding shares, demonstrating a strong commitment to returning capital to shareholders.
Despite these strong fundamentals, MGM’s management believes the company is undervalued, trading at an implied EV/Adjusted EBITDA multiple of just 3.3x based on a share price of $32.
Outlook and Guidance
For 2025, MGM provided guidance on several key financial metrics, including corporate expense of $440-475 million, capital expenditures of $820-850 million, and cash taxes of up to $100 million. The company expects to generate significant cash flow while continuing to invest in growth opportunities.
BetMGM is projected to maintain its positive momentum, building on its profitable first quarter. Meanwhile, MGM Digital is targeting $1 billion in top-line revenue as it expands into new markets.
The company’s stock closed at $31.80 on April 30, 2025, down 1.04% for the day, but rose 3.15% to $32.45 in after-hours trading following the presentation. The stock remains well below its 52-week high of $47.26, suggesting potential upside if the company continues to execute on its strategic initiatives.
MGM Resorts remains focused on its mission "to be the world’s premier gaming & entertainment company" through its diversified portfolio of integrated resorts and growing digital presence across global markets.
Full presentation:
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