MGM Resorts International said it is continuing to evaluate an $18 billion takeover proposal from People Incorporated while reporting modest revenue growth and sharply higher profit for the second quarter, driven by gains in its digital business and Las Vegas operations.
The second-quarter consolidated revenue rose 1% year over year to $4.5 billion, while net profit attributable to MGM jumped 497% to $292.4 million. Operating profit increased 24% to $503.6 million, although adjusted EBITDA declined 6% to $610 million.
The update comes as MGM reviews an all-cash offer from People Incorporated, formerly known as IAC, which has proposed acquiring the shares it does not already own for $48.30 each, valuing the company at about $18 billion. People currently owns 26.1% of MGM’s outstanding common stock.
President and Chief Executive Officer Bill Hornbuckle confirmed a special committee of independent directors was continuing to assess the proposal.
“The committee continues to evaluate the proposed transaction in consultation with independent outside advisors,” Hornbuckle said. “I’m confident our board will pursue the course of action that’s in the best interest of the company and our shareholders.”
Revenue growth was led by MGM Digital, where revenue increased 20% to $196 million, though the segment’s adjusted EBITDAR loss widened to $31 million from $26 million a year earlier.
Las Vegas Strip Resorts, MGM’s largest business, posted a 3% increase in revenue to $2.2 billion, supported by higher hotel occupancy and room rates, along with stronger casino and entertainment performance.
Regional Operations revenue declined 4% to $924 million as casino revenue fell, partly offset by higher non-gaming revenue. Revenue at MGM China was flat at $1.1 billion, while adjusted EBITDAR dropped 15% to $257 million.
Across the group, casino revenue rose 2% to $2.38 billion, and food and beverage revenue increased 3% to $802.3 million. Rooms revenue slipped 1% to $849.1 million, while entertainment, retail and other revenue declined 5% to $416.3 million.
Pre-tax profit more than tripled to $413.5 million as non-operating expenses fell, while first-half revenue increased 3% to $8.91 billion. However, Adjusted EBITDA for the six-month period declined 7% to $1.19 billion.
Hornbuckle said the results reflected the strength of MGM’s diversified operations.
“MGM once again demonstrated the strength of our diversified portfolio with record Q2 consolidated revenue driven by a second consecutive quarter of year-over-year revenue growth for Las Vegas Strip Resorts, all-time best Regional Operations same-store quarterly revenue, and 20% year-over-year revenue growth at MGM Digital,” he said.
The company also said construction of its integrated resort inOsaka remains on schedule for a 2030 opening.
“The underground work is progressing nicely with over 60% of foundation piles completed,” Hornbuckle said, adding that the project remains “on time and on budget.”
On the earnings call, management said Las Vegas continues to face weaker international visitation and reduced drive-in traffic from California, with annual visitor numbers still down by about 3.5 million. However, executives said major live events continue to support demand.
“We’re a big event marketplace now,” Hornbuckle said. “When something meaningful happens, whether it was just a UFC fight with (Conor) McGregor or BTS, the market responds to it with a great deal of interest and velocity.”
The company said promotional all-inclusive packages introduced in March have booked more than 30,000 room nights, with nearly half of guests being first-time visitors.
Chief Operating Officer Ayesha Molina said demand for the packages has been particularly strong on weekends.
“We’ve seen a lot of interest and demand from the customers, particularly on the weekends,” Molina said. “They’re actually purchasing the package at slightly higher rates, which has been accretive.”
Despite softer international travel trends, Molina said MGM remains optimistic about Las Vegas demand.
“As the overall macroeconomic environment continues to stabilize, particularly in Southern California, and as Bill noted with international travel, I think we have every reason to be optimistic about Vegas,” she said.
Original article: https://www.yogonet.com/international/news/2026/07/30/125646-mgm-reviews-18-billion-takeover-proposal-as-digital-growth-lifts-quarterly-revenue
