mgm resorts vows to cut costs as part of mgm20 initiativeby Joker 04.01.2019 0 comments
MGM Resorts International has vowed to cut costs, improve efficiencies and prepare for a period of growth as announced in its new company-wide ‘MGM 20′ initiative.
The company is striving to grow from its previous profit growth initiatives implemented in 2015, and expects to deliver annualised Adjusted EBITDA uplift of $300m (£238m) in aggregate, consisting of $200m (£159m) by the end of 2020 and an additional $100m (£79.4m) by the end of 2021.
“Today, we are taking the next step in our evolution as an organisation. We are building on the strong foundation that we have solidified over the past few years, to deepen our efficiencies and achieve sustained growth and margin enhancement,” said Jim Murren, Chairman and CEO of MGM Resorts International.
“MGM 2020 is intended to further transform the way we operate and leverage the most effective operational architecture for our company.”
MGM emphasised its plan to undergo a digital transformation that will allow for a budget reallocation and investment in technological advances. The investment plans will be designed to improve revenues and increase market shares through innovation and improving consumer experience through data, pricing, digital and loyalty capabilities.
Murren continued, “When we launched our Profit Growth Plan a few years ago, we transformed our culture to embrace a ‘One Company’ approach to operations, create best practices and efficiencies, and drive significant Adjusted EBITDA growth and margin expansion.
“These cornerstone strengths allowed us to exceed our initial expectations on our Profit Growth Plan, as we currently operate many of the most profitable destinations in Las Vegas and across our regional markets.”
“We will continue to work toward cementing MGM Resorts as the leader in sports, following the milestones achieved in 2018 with GVC and the professional sports leagues,” concluded Murren.
“MGM 2020 reinforces our commitment to increasing margins and maximising profitability.”