MGM Resorts International intends to increase the company's profitability

7 January 2019

MGM Resorts International announced its intention to cut costs and streamline its business to make the company more profitable.

In a written report, the casino operator, based in the US, presented its forecast. The company expects that the MGM strategy for 2020 will lead to an increase in adjusted EBITDA profit by $200 million next year and another $100 million a year later.

MGM 2020 provides for organizational changes to improve operational efficiency at the company's 28 resorts. The savings in labor costs will be half the additional adjusted EBITDA, sources will account for one-quarter, and revenue optimization the rest.

Casino

Representatives of the company also said that they plan to introduce innovations in order to improve the quality of customer service with the help of new data processing solutions, digital technologies and loyalty opportunities. It is expected that by 2021 this will bring an additional EBITDA of $100 million.

MGM Resorts is the parent company of MGM China Holdings Ltd casino operator, which controls two facilities in Macau: MGM Macau on the peninsula and MGM Cotai, which was opened in February last year.

The MGM 2020 strategy is designed to further change the way we work. We will use the most efficient operating architecture for our company,” - said JM Murren, Chairman and CEO of MGM Resorts.

Earlier it became known that MGM Resorts has achieved an increase in the credit limit for the implementation of large-scale projects.

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