Analysts: Macau operations are cushioning MGM’s US weakness

Arkhouse, an activist investor, urged People Inc. (PPLI) to repurchase $750M in stock, citing undervaluation and MGM's (MGM) 'depressed' share price. Arkhouse estimates PPLI's intrinsic value at $72 per share, higher than its current $40.90. PPLI owns 26% of MGM and recently abandoned an $18B takeover bid. MGM's CEO ruled out further takeover talks with PPLI.

MGM Digital reported Q3 revenue of $184m, up 6% YoY, with adjusted EBITDAR loss narrowing to $4m. Revenue growth slowed from Q2, while UK, Netherlands, and Spain drove gains. MGM Resorts' group adjusted EBITDA fell to $403m. BetMGM's revenue rose 7% to $710m, with MGM receiving $34m in payments. Macau operations saw record revenue of $1.1bn, a 5% increase.

MGM Resorts ended takeover talks with its largest shareholder, People Inc., led by Barry Diller. Both parties revised their voting agreement, capping People's ownership at 29.9%. MGM reported Q3 revenue of $4.2B, down 1% YoY, with Las Vegas results weighing on performance. MGM China set a quarterly revenue record of $1.1B, up 5% YoY. The company has $2.3B in cash and $5.6B in long-term debt.

MGM Resorts (MGM) shares rose 4.6% after reporting Q3 revenue of $4.2B, a net loss of $17M, and amending a voting agreement, allowing more share repurchases. MGM China revenue hit a record, and BetMGM saw growth. The stock closed at $28.44. The company is down 22.3% YTD.

MGM Resorts International (MGM) has ended talks of any deal with People Inc. (PPLI), according to CEO Bill Hornbuckle during an earnings call. This decision impacts potential M&A activity between the two companies.

MGM Resorts reported Q3 earnings, noting average daily rate pressure but stabilization in October. Regional operations saw a 1% revenue increase, while MGM China's revenue rose 5%. BetMGM narrowed losses with 7% revenue growth. MGM Osaka is on track for a 2030 opening. The company has $1.4B left for share repurchases.