- MGM to Boost Revenue by $300 million
- Layoffs and technological diversity part of the plan
- MGM intends to expand in New York which may soon legalize sports betting
MGM Resorts International has kickstarted its efficiency program extending well into 2020 and 2021. The casino will seek to rev up its revenue by $300 million before 2021 is out.
MGM Carries on with Vision 2020 Plan
International casino & hotel brand MGM is now shifting into a higher corporate gear in a bid to add $300 million in profits by 2021. This is an ambitious plan outlined under the MGM 2020 initiative looking into ways to improve the overall profitability of the company.
Apart from revenue growth, MGM is planning to leverage new technologies to boost engagement, win new customers, and expand into new markets. The brand has successfully partnered with all but one major sporting bodies, including:
- The National Hockey League (NHL)
- Major League Baseball (MLB)
- National Basketball Association (NBA)
MGM is planning to boost the majority of its revenue by the end of 2020, with $200 million more in its coffers. Another $100 million will be added by the end of 2021, for the commutative amount of $300 million.
To achieve these ambitious goals MGM will most likely have to lay off people, as the company has already confirmed. MGM explained that 25% of the revenue will come from “shifting functions and responsibilities” whereas another 25% will be obtained through optimization of the revenue channels.
MGM considers that what the company is doing right now is to optimize its corporate structure and “solidify” what’s been build over the past few years, MGM Chairman Jim Murren explained.
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.
According to Murren, the latest Vision 2020 is part of another initiative dating back to 2015 and called the Profit Growth Plan which has already achieved its pre-determined goals.
Mr. Murren will also oversee the relocation of fuds to specific technology-driven initiatives, which are expected to pay off in the long-term.
We had a solid finish to the year in 2018, and as we look to 2019 and beyond, we remain confident in the ramp of our newly opened properties MGM COTAI, MGM Springfield, Park MGM and NoMad Las Vegas
On the matter of new markets, Mr. Murren explained that New York and Ontario are the two new anticipated markets for the casino. In fact, New York can be a particularly tempting prospect at this time as the state is considering to push ahead with its own sports betting legislation, which is another important source of revenue for casinos, including flagship brands such as MGM.
Mr. Murren highlighted the important milestones achieved in 2018, including the multiple partnerships with the major sporting bodies in the United States. The National Football League (NFL) recently signed with Caesars, a move welcomed by the American Gaming Association (AGA)