MGM Resorts International reported a drop in profits from its Las Vegas operations during the third quarter, as hotel renovations and softer visitor demand slowed performance. The company said net revenue from its Las Vegas properties declined about seven percent to roughly two billion dollars compared to the same period last year.
Overall, MGM Resorts posted adjusted earnings of twenty-four cents per share, falling short of analyst projections that averaged around forty cents. Total company revenue increased slightly, rising about 1.6 percent to 4.25 billion dollars, helped by strong results from its China operations, which grew more than seventeen percent year-over-year.
Executives said the weaker Las Vegas performance was largely due to major remodeling at MGM Grand Las Vegas, which temporarily reduced available rooms and affected guest volumes. Occupancy rates dropped to about 89 percent, down from 94 percent a year earlier, and the average daily rate slipped roughly three percent. Table games and food and beverage spending were also below prior-year levels.
MGM Resorts leadership described the Las Vegas market as being in a period of adjustment, with mid-market guests showing more sensitivity to prices. To address this, the company said it is refining its pricing strategies, upgrading property amenities, and focusing more on convention and group business for the rest of the year.
While its Las Vegas division struggled, MGM Resorts saw steady performance in its regional U.S. properties and strong gains in Macau. The international business helped offset the weaker domestic results and contributed to the company’s modest overall revenue growth.
Looking ahead, MGM Resorts expects improvement in the fourth quarter as major construction projects wind down and convention traffic increases. The company said it believes that by 2026, the Las Vegas market will stabilize, supported by completed renovations and a stronger events calendar.
Following the earnings announcement, MGM Resorts’ stock declined more than five percent in after-hours trading as investors reacted to the lower-than-expected results. Despite the short-term dip, company executives maintained confidence in the long-term strength of the MGM Resorts brand and its recovery plans for Las Vegas.
