Bill Hornbuckle, MGM Resorts’ CEO, plays it smart with investments these days. He’s all about locking in the company’s future through sharp capital moves. After bowing out of the New York casino chase this month, MGM is shifting gears overseas. Analysts sure didn’t see that coming from a top player. But Hornbuckle views it as a real growth booster. Still, he’s keeping a positive vibe even with the stock dipping post-earnings call. He pins the Las Vegas slowdown on fewer international folks showing up, Spirit Airlines’ troubles, and traffic jams from Southern California.
That said, MGM is rolling out fresh ideas to draw more visitors. The team’s hustling to flip things around fast. On the other hand, this pivot puts Japan’s integrated resorts front and center as the big next step. Hornbuckle laid it out for Wall Street on Wednesday. At the end of the day, he’s laser-focused on those long-term wins rather than quick bids.
Las Vegas Operations Take a Beating from Challenges
MGM’s feeling the pinch in Nevada, right alongside the competition. Tourism took a nosedive in 2025 amid economic jitters. Folks are tightening belts on entertainment spending. For example, Strip visits dropped 8.8% in September to 3.1 million, according to the Las Vegas Convention and Visitors Authority. That’s nine months straight of slides. By comparison, Caesars’ occupancy fell 5% to 92%. Their CEO, Tom Reeg, blames slim city-wide traffic and weak table games.
Caesars’ hold percentage even hit a three-year low. MGM’s grappling with similar headaches across its spots. To top it off, the MGM Grand renovations dinged results earlier. The work finished this month, but it ate into profits before. Even so, the leaders are pushing fixes. They’re adapting to these market twists. All in all, the industry’s keeping a close eye on any rebound hints.
Financial Metrics Show Some Tough Declines
MGM clocked $2 billion in Strip revenue, off from $2.1 billion a year ago. The dip comes from room upgrades and softer food sales. Table hold eased to 22.6% from 23.7%. RevPAR took a hit, too, as a key gauge. Consequently, adjusted EBITDAR landed at $601 million, down from $731 million prior. Plus, business interruption funds shrank by $14 million. Insurance expenses climbed $13 million for liability and workers’ comp.
Yet MGM is betting on Japan for new revenue flows. In contrast, Vegas woes are pulling down the totals. That aside, execs stay bullish on comebacks. Above all, they’re putting global growth ahead of local patches. Smart plays like skipping New York free up cash. Either way, investors want clearer roadmaps moving forward.
