MGM Resorts, one of the leading companies in the gaming and accommodation industry, is well poised to grow in high brand awareness. The company’s superior business model, broad non-gaming revenue opportunities, high-quality assets, and attractive property locations are key catalysts. In recent years, the company has taken several initiatives to align each recognized brand into a global entertainment brand. This resulted in a disciplined business model with a unified vision of strategy.
The company gets a solid share of its revenue from Macao, the world’s largest gaming destination. It is undertaking initiatives to increase garbage revenue and productivity in Macao, and anticipates a positive trend, driven by updates to major gaming products and marketing initiatives. Notably, revenue at MGM China improved 19% year-over-year in 2019. Despite the coronavirus pandemic, the company is confident about the prospects in Macau and will continue to invest. The company announced that the market will rebound quickly after the Visa scheme and other restrictions are lifted.
MGM Resorts uses various types of technology to maximize revenue and efficiency in operations. The company continues to adopt forms that boost reserves. The company has an M life Rewards program for clients at national resorts. M life provides access to exclusive member rewards, privileges and events.
After reopening the Las Vegas properties in early June, MGM Resorts announced the reopening dates of several other resorts in the coming weeks. MGM Resorts will reopen Luxor and The Shoppes at Mandalay Bay Place on June 25, followed by the reopening of ARIA together with Four Seasons Las Vegas operator Mandalay Bay on July 1. The company also expects to reopen Excalibur on June 11.
The financial performance of MGM Resorts in 2020 is likely to be affected by the coronavirus outbreak. The company’s domestic operations are temporarily closed to contain the spread of the coronavirus. Although casinos on Macao properties are now open, the company is experiencing low visits. The company announced that MGM China bears operating expenses of almost $ 1.5 million per day.
In an effort to maintain sufficient liquidity, the company has reduced dividends and decreased spurious spending. Additionally, due to the danger of COVID-19, MGM Resorts announced the termination of its previously announced modified Dutch auction offer. As a result of this termination, the company withdrew the purchase of issued and outstanding shares of $ 1,250,000,000 of its common shares.
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