MGM Digital narrows third-quarter loss to $4m as revenue rises to $184m
MGM Resorts' LeoVegas-led online arm cut its adjusted EBITDAR loss to $4m from $23m, with Spain, the Netherlands and the UK driving the gains.
MGM Digital, the LeoVegas-led international online business of MGM Resorts, posted segment revenue of $184m in the third quarter, up from $174m a year earlier. Its segment adjusted EBITDAR loss narrowed to $4m, from $23m a year earlier, moving the business close to break-even. That improvement came in a quarter when group adjusted EBITDA dropped to $403m from $506m.
MGM Digital combines LeoVegas with other consolidated interactive gaming subsidiaries and excludes the BetMGM North America joint venture. LeoVegas results have been included in MGM’s accounts since the acquisition was completed on 7 September 2022.
Over nine months, segment revenue is up 21%, but revenue growth fell sharply from the previous quarter. The BetMGM brand lifted MGM Digital’s business-to-consumer revenue by 8%, with Spain, the Netherlands and the UK leading the gains, management told analysts, according to a call transcript published by The Motley Fool. In August MGM began running online sports betting in the UK on its own platform, which now generates more than 80% of the company’s online sports revenue there.
The second quarter’s strong rise was recorded with the higher UK online casino tax already in force. The UK duty increase is part of a package the government says will raise more than £1bn a year. A new 25% remote betting rate within General Betting Duty takes effect from April 2027.
Most of the group’s revenue decline came from an 8% fall at Regional Operations and a 2% fall at the Las Vegas Strip resorts. Strip EBITDAR fell 12% to $531m. MGM’s average daily room rate in Las Vegas fell 8% to $218. Revenue per available room fell 8% to $193, while occupancy was unchanged at 89%.
MGM China posted record revenue of $1.1bn, a 5% rise, and a record 17.1% market share. Its segment adjusted EBITDAR still fell 7% to $264m, from $284m. The net loss attributable to MGM narrowed to $17.1m, from $285.3m a year earlier.
In North America, BetMGM reported third-quarter net revenue of $710m, up 7% on $667m. The joint venture with Entain generated $34m in payments to MGM in the quarter. BetMGM said it expects to finish 2026 near the bottom of both guidance ranges: $2.9bn to $3.1bn for net revenue and $300m to $350m for adjusted EBITDA.
Sources
- CasinoBeats · Industry media · primary source ·
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