31 Oct 2019
Posted in Travel & Tourism
MGM Resorts International currently struggling despite 2020 plan
Following the announcement of MGM Resorts International results for Q3 2019, Johanna Bonhill-Smith, Travel and Tourism Analyst at GlobalData, a leading data and analytics company, offers her view:
“Despite consolidated operating income decreasing 42% in comparison to Q3 2018, MGM Resorts International declares this is still in line with its expectations.
“However, the sale of the ‘Bellagio’ resort in Las Vegas, upcoming sale of ‘Circus Circus Casino’ and others planned in the pipeline suggest otherwise.
“The MGM 2020 plan aimed to reduce costs, drive margin improvements and form new market opportunity, but major improvements will have to be made if this plan is to still be on track for 2020.
“Japan has been identified as a valuable gaming market for sports betting and MGM hold aspirations to build an integrated resort in Osaka soon. Interest in sports tourism within Japan has grown by 2%, according to GlobalData’s Q4 2018 and Q3 2019 consumer survey results. If the integration across this resort is a success, this could prove a major opportunity in line with future growth goals.”