MGM Resorts International reported third-quarter revenue of $4.2 billion, down 1% year over year, as CEO Bill Hornbuckle confirmed that takeover discussions with People Inc. had ended. The company released its results on October 28 for the quarter ended September 30.
The net loss attributable to MGM narrowed to $17 million from $285 million a year earlier. Consolidated adjusted EBITDA declined to $403 million from $506 million.
Las Vegas Strip revenue fell by 2% to $2.0 billion. The segment’s adjusted EBITDAR declined by 12% to $531 million, with the company identifying lower room rates as a factor affecting performance.
Regional revenue was $883 million, down 8% on the reported comparison. Adjusted for property dispositions, however, same-store regional revenue increased by 1%. MGM China revenue grew by 5% to $1.1 billion.
An amended voting agreement follows the end of takeover discussions
“We are done,” Hornbuckle told investors during the earnings call. “That is our position and that is People’s position.” His comments addressed speculation about transactions in either direction between MGM and People.
Under the amended agreement, People and Barry Diller will not acquire additional MGM shares if doing so would take their ownership above 29.9%. They also agreed to vote their holdings in line with board recommendations concerning a future change-of-control transaction.
MGM, in turn, agreed not to take defensive measures designed to be adverse to People’s business while the relevant commitments are observed. The arrangement follows People’s withdrawal of its proposal to acquire MGM’s outstanding shares.
Separately, MGM Digital reported revenue of $184 million, up 6%, and narrowed its segment-adjusted EBITDAR loss to $4 million from $23 million. That division includes LeoVegas and other consolidated interactive businesses, but excludes the BetMGM North America venture.
