LAS VEGAS (KLAS) — A nine-week decline in resort bookings made for a “choppy” second quarter, based on executives at MGM Resorts Worldwide.
Amid glowing experiences from the corporate’s resorts in China, MGM CEO and President Invoice Hornbuckle expressed confidence that tourism will return to ranges Las Vegas has come to anticipate. “Las Vegas remains fundamentally solid,” he advised buyers on MGM’s second quarter earnings name.
The discuss on the streets, and buyers have heard it, is that Las Vegas is hurting itself with excessive costs and fees for issues that was free.
Hornbuckle stated MGM’s high-end resorts — Bellagio Resort & On line casino, ARIA Resort & On line casino and The Cosmopolitan of Las Vegas — aren’t feeling the pressures. Room charges have elevated 4% at Bellagio, slot income is up for the yr, and gamblers who play $250,000 or extra are up 25% up to now this yr.
“But we do need to keep an eye on value. We’ve followed the headlines as I think many have in terms of the value equation, the value stories and what is being said about Las Vegas. And we do need to enhance upon that,” Hornbuckle stated.
Q1 REPORT: MGM Resorts income drops; officers name Las Vegas numbers ‘solid’
“Las Vegas is still an amazing value. Some of the rates out there this next midweek are comparable to things I’ve seen 20 years ago. To say Las Vegas is not a value, which I know has taken some headlines, is just not a complete reality. But we all need to focus on that. We all need to change the narrative and to continue to keep it positive,” he stated.
MGM properties together with Luxor Resort & On line casino and Excalibur Resort & On line casino have felt the pinch. Executives talked about pressures which have proven up within the first half of 2025.
“Southern California this summer has laid quiet more than it historically has. And so I think that’s a consideration that we all need to think about going forward as it relates to value-oriented customers,” Hornbuckle famous
Journey total has been down, however significantly worldwide journey.
“I think international visitation has been an issue, not only for Las Vegas, but a lot of destinations, but particularly earlier in the year with Canada,” Hornbuckle stated. He famous the Vegas Golden Knights’ position in drawing followers to T-Cell Area.
MGM reported file consolidated internet revenues of $4.4 billion, up 2%, and consolidated earnings of $648 million, up from $635 million within the second quarter of 2024.
However Las Vegas numbers had been down. Internet revenues had been $2.1 billion, a 4% drop from Q2 in 2024. Earnings of $710 million had been 9% beneath final yr’s $782 million. The distinction — $60 million of the $72 million complete — was attributed to a seamless room reworking challenge at MGM Grand Las Vegas and a few dangerous luck, with a decrease maintain within the MGM Grand on line casino, based on Jonathan Halkyard, chief monetary officer and treasurer. The opposite $12 million got here from decrease midweek efficiency at Luxor and Excalibur, and that has continued into July.
Three of the previous 4 weeks have seen a rise in bookings, he stated.
“We’re optimistic about restoring a growth trajectory in the fourth quarter that will carry on into 2026,” Halkyard stated.
On different topics:
Financial savings from automation
After an April report that 34 staff had been shedding their jobs at concierge desks, MGM advised buyers that surveys confirmed clients most well-liked to make use of digital interfaces. What they did not disclose on the time was how a lot that may save the corporate.
“We’re on track to achieve over $100 million … $150 million in EBITDA (earnings) enhancements in 2025, the majority in Las Vegas with continued focus on automation and other initiatives in response to customer preferences. We have identified other opportunities to keep us on track as we champion a continuous improvement mindset across the business,” Halkyard stated throughout Wednesday’s name.
He stated “70 to 80 different initiatives,” together with digital check-in, use of an AI-driven chatbot, and automation at quick-service eating places, had been producing the financial savings. He didn’t talk about whether or not extra jobs had been eradicated.
Halkyard indicated that about half the financial savings — $80 million — had been achieved within the first six months of 2025, with the remaining anticipated by the top of the yr.
Tax adjustments from ‘One Massive, Stunning Invoice Act’
Impacts of the “One Big, Beautiful Bill Act” (OBBBA) are nonetheless being unraveled, however MGM will get important financial savings from the bonus depreciation change. Corporations can depreciate the total worth of certified property, and MGM will flip a $100 million tax legal responsibility this yr right into a constructive $100 million on the stability sheet, Halkyard stated.
Hornbuckle stated U.S. Home Appropriations Committee Chair Tom Cole (R-Okla.), met with him, Caesars Leisure CEO Tom Reeg, and Wynn CEO Craig Billings to debate parts of the OBBBA adjustments. The assembly centered on adjustments to tax insurance policies permitting gamblers to say 100% of their losses The extremely publicized change might lead to an individual owing 10% that they do not should pay underneath present tax legislation. “We don’t think that’s a fair deal,” Hornbuckle stated. Cole had a listening to and stated he would work with Democratic Nevada Rep. Dina Titus to get it corrected.
Hornbuckle additionally addressed the reported change within the threshold to report jackpots to the IRS. “Raising up the slot win from $1,200 to $2,000 is helpful,” he stated.
