The company introduced a strategy that is set to reduce costs, drive margin improvement and position MGM for future growth.
US.- MGM Resorts International unveiled on Thursday a plan to further reduce costs, improve efficiencies and position the company for future growth. The company said that it expects to deliver annualised adjusted EBITDA uplift of US$300 million in aggregate, consisting of US$200 million by the end of 2020 and an additional US$100 million by the end of 2021.
The program called “MGM 2020” aims to leverage a more centralised organization in order to boost profitability and lay the groundwork for a digital transformation to increase revenue through key investments in technology.
“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.”
“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. Importantly, during this time, we established key centralized strategic functions and developed crucial operational expertise to enable best practices and efficiencies. 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.”