MGM China reported a 9 percent year-on-year increase in net revenues for the first quarter of 2026, although profitability declined due to higher branding fees linked to the use of the MGM name.
The Macau-based operator generated $1.1 billion in revenue for the three months ended March 31st, up from $1.0 billion a year earlier, while segment adjusted EBITDAR fell 4 percent to $273 million.
According to financial results released by its parent, MGM Resorts International, on Thursday, branding license fee expenses increased by $23 million year-on-year, reflecting the first full quarter under a new long-term agreement between the two entities. Total branding fees reached $41 million during the period, compared with $18 million a year earlier.
MGM Resorts holds approximately 56 percent of MGM China’s issued share capital, underscoring the close financial and operational relationship between the two companies. The branding fee forms part of this structure, reflecting payments for the use of the MGM brand and related intellectual property.
At the property level, both MGM Macau and MGM Cotai recorded revenue growth, although performance diverged at the EBITDA level. A decline at MGM Macau was offset by stronger gains at MGM Cotai, resulting in overall growth in adjusted EBITDA on a combined basis.
MGM Macau generated revenue of HK$3.44 billion ($439 million) in the first quarter, up 9.2 percent from HK$3.15 billion ($402 million) a year earlier, although adjusted EBITDA declined 7.9 percent to HK$831.5 million ($106 million) from HK$902.5 million ($115 million).
MGM Cotai reported stronger performance, with revenue rising 10.1 percent to HK$5.33 billion ($680 million) from HK$4.84 billion ($617 million), while adjusted EBITDA increased 10.9 percent to HK$1.63 billion ($208 million) from HK$1.47 billion ($187 million).
Operationally, MGM China’s performance was supported by gaming activity. Casino revenue rose 9 percent year-on-year to $977 million, driven by a 10 percent increase in main floor table games drop and an 18 percent rise in table games win, with the win rate improving to 27.1 percent.
At the group level, MGM Resorts reported consolidated net revenues of $4.5 billion, up 4 percent year-on-year, with MGM China cited as a key contributor to overall growth.
