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SEC filingConsolidated revenue rose 2% in Q2 2025, driven by MGM China and Digital, but operating income fell 5% due to higher depreciation.
For the three months ended June 30, 2025, MGM Resorts International reported consolidated net revenues of $4.40 billion, a 2% increase from $4.33 billion in the prior-year quarter. Growth was driven by MGM China (+9%), Regional Operations (+4%), and MGM Digital (+14%), partially offset by a 4% decline at Las Vegas Strip Resorts. Despite top-line growth, consolidated operating income fell 5% to $404.6 million, impacted by a $50 million increase in depreciation and amortization expense from recent capital projects and higher gaming taxes. Net income attributable to MGM Resorts International dropped sharply to $49.0 million from $187.1 million, largely due to a $208 million foreign currency transaction loss on USD-denominated debt held by a foreign subsidiary. Consolidated Adjusted EBITDA improved slightly to $647.5 million from $635.0 million, as gains in MGM China and Regional Operations offset weakness in Las Vegas.
Las Vegas Strip Resorts, the company's largest segment, saw net revenues decrease 4% to $2.11 billion, with casino revenue down 6% (table games win percentage fell to 22.9% from 24.2%), rooms revenue down 4% (occupancy dropped to 93% from 97%, and RevPAR declined to $235 from $240), and food and beverage revenue down 6%. Segment Adjusted EBITDAR margin contracted to 33.6% from 35.5%. Regional Operations posted a 4% revenue increase to $964.6 million, driven by a 4% rise in casino revenue on higher slot handle and table games drop. Segment Adjusted EBITDAR margin expanded to 32.0% from 31.1%, aided by $14 million in business interruption insurance proceeds.
MGM China was a standout, with net revenues up 9% to $1.11 billion, as casino revenue rose 10% on increased main floor table games drop ($4.085B vs $3.835B) and higher VIP win percentage. However, Segment Adjusted EBITDAR margin fell to 27.1% from 28.9% due to increased gaming taxes. MGM Digital's revenue grew 14% to $163.9 million from brand expansion, but its Segment Adjusted EBITDAR loss widened to $25.7 million from $13.9 million due to higher costs. The BetMGM North America Venture turned profitable, contributing $21.8 million in income versus a $38.4 million loss a year ago.
Management's outlook focuses on strategic growth and capital allocation. For the remainder of 2025, planned capital expenditures are expected to be $540 million to $640 million, including $100 million to $150 million for MGM China. The company continues to explore development opportunities, including a commercial gaming facility in New York (project cost $2.3 billion, including a $500 million license fee) and funding for MGM Osaka ($2.6 billion over four years). Cash interest payments over the next twelve months are estimated at $340 million to $360 million on a consolidated basis. The company maintained significant share repurchase activity ($717 million in H1 2025) and has $2.0 billion remaining under its April 2025 repurchase plan. The effective tax rate for H1 2025 was 13.9%, favorably impacted by Macau gaming profits exempt from complementary tax.
Operating cash flow of $1,192.9M covered capital expenditures of $496.5M, resulting in a cash flow coverage ratio of 2.4x. Net income was $344.8M, implying a cash conversion ratio (CFO/Net Income) of 3.5x, driven largely by non-cash charges including depreciation ($478.4M), stock-based compensation ($45.1M), and foreign currency losses ($308.5M). Working capital was a net use of $231.6M, primarily due to a $194.9M decrease in accounts payable and accrued liabilities.
Capex increased 21% YoY to $496.5M. Share repurchases of $717.2M consumed 60% of operating cash flow, while debt repayments net of borrowings resulted in net debt reduction of $160.6M. No dividends were paid to common shareholders.
A significant foreign currency transaction loss of $308.5M (non-cash) inflated net income adjustments. Interest paid totaled $197.4M, and income taxes paid were $63.2M, down sharply from $165.9M in the prior year.