MGM Resorts details MGM 2020 strategic business plan
MGM Resorts International has announced a new strategy to reduce costs, improve efficiency and position the company for further growth.
The operator expects to deliver adjusted EBITDA uplift of $300m on aggregate, consisting of $200m by the end of 2020 and an additional $100m in 2021.
The "MGM 2020" plan will be driven by two main components. Firstly, in the past two years, MGM Resorts has centralised key company-wide functions and invested in resources to create centres of excellence.
This means MGM Resorts is now in a position to leverage these centres to create additional efficiencies and realise $200m of annualised adjusted EBITDA uplift in 2020. Half of this will come from labour savings, 25% from sourcing and the remaining 25% from revenue optimisation.
Secondly, MGM will invest in digital transformation to drive revenue growth, with the company aiming to realise a further $100m in annualised adjusted EBITDA uplift by the end of 2021.
Jim Murren, Chairman and CEO of MGM Resorts International, said: "Today, we are taking the next step in our evolution as an organisation. We are building on the strong foundation we have solidified over the past few years, to deepen our efficiencies and achieve sustained growth and margin enhancement."