MGM China Holdings Ltd. reported a 10% year-on-year increase in net revenues for the first quarter of 2026, reaching USD1.1 billion (HKD8.8 billion), even as profitability slipped due to higher branding fees tied to its partnership with parent MGM Resorts International.
MGM Resorts International’s net revenues in Macau climbed to $1.1 billion from $1.0 billion in the same period last year. This growth was primarily driven by a 13% rise in daily gross gaming revenue (GGR) and a 19% surge in daily mass GGR, which reached a post-pandemic high.
Despite the revenue gains, Segment Adjusted EBITDAR fell 4% to $273 million from $286 million. This decline was largely attributed to a $23 million increase in branding license fees, which rose to $41 million.
MGM Chief Financial Officer Jonathan Halkyard explained during the Q1 earnings call, “The decrease in segment adjusted EBITDAR of $13 million was primarily driven by the new branding fee agreement through which we received $23 million more in fees than in the prior-year period.”
“As a reminder, the brand fee increased from 1.75% to 3.5% of revenue starting this year.”
Halkyard further added, “While this impacts segment adjusted EBITDAR, it results in higher cash flow for MGM Resorts International.”
Executives projected that margins would stabilize “safely in the mid-20s” and expressed confidence in MGM Macau’s market position.
They added, “We believe costs and our margins are sustainable now throughout the year.”
In Macau, MGM Cotai led revenue growth with a 10% increase, reaching HKD5.3 billion (approximately $680 million), despite a decline in VIP table games turnover. Adjusted EBITDA for MGM Cotai also saw an 11% rise to HKD1.6 billion.
MGM Macau reported a 9% revenue increase to HKD3.4 billion and Adjusted EBITDA of HKD832 million, a 7.9% decrease compared to the first quarter of 2025 (1Q25).
MGM China’s overall GGR market share for the quarter stood at 15.4%, down slightly from 15.7% in the first quarter of 2025 (1Q25).
leaders bullish on premium push in Macau
During the first-quarter earnings call, MGM Resorts executives detailed significant reinvestments aimed at strengthening their premium mass market positioning, particularly ahead of Golden Week.
Suite conversions and gaming area upgrades at MGM Cotai were completed ahead of schedule, with renovations planned for MGM Macau’s suites to ensure offerings remain “fresh and ahead of market growth.”
MGM Resorts CEO Bill Hornbuckle expressed optimism about Macau’s trajectory. He highlighted upcoming suite additions, describing Macau’s operations as “still under-suited.”
“We’re adding some more suites, which will be beneficial because I think everybody understands we’re still under-suited. That’ll be beneficial,” Hornbuckle said, adding, “It’s always difficult to say Macau is ‘stable’” – but adding: “I feel good about it. I feel very good about our market position and what we’re doing and how we’re doing it.”
MGM China CEO Kenneth Feng emphasized a quality-over-quantity strategy in Macau’s premium-driven market, describing it as “not simply about supply. It’s not like a purely quantitative play. It’s more about quality. It is about understanding and serving the purpose of the target guests.”
At MGM Cotai, Feng highlighted the recent launch of 63 Prime Suites, describing them as “unique.”
“They are different. They are refreshing. They are cozy,” he said, noting strong customer interest since their opening.
Looking ahead at MGM Macau, Feng outlined plans for “about 100 suites” currently in the design stage, alongside enhancements to gaming spaces and F&B outlets.
At MGM Cotai, Feng also detailed the opening of a new premium gaming space. “We have also just opened about 40,000 square feet of premium gaming space in the Cotai area with about 40 tables and 15 private rooms. It is also new – the design, the construction, and all the services there. We can see a lot of customers are very keen even right now,” Feng said.
Regarding side bets, Feng mentioned their growing traction post-pandemic, noting that the company is rolling out more this week following DICJ approval.
“We are rolling out some more side bets literally this week at MGM, following some recent approval by DICJ,” Feng said, adding, “The history of side betting in Macau is still relatively short […] We will keep monitoring the adoption of the games, the players, and the GGR trends, etc.”
UAE project update
On the UAE, MGM’s $1.2 billion Island project in Dubai appears to be progressing on schedule. Despite regional tensions, including the Iran conflict, the company said this has not delayed construction.
“For now, China State, which is building the project, continues, and the project remains on schedule,” Hornbuckle said.
“We have not heard yet, nor do I think we will for a while given the environment, whether gaming will be permitted,” Hornbuckle noted, adding that the company is focusing efforts there rather than Abu Dhabi. “They’re allowing us to hold a quarter of a million square feet of space for a potential casino on one of the podium floors there; it could be very exciting.”
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