Casino operator MGM Resorts International on Jan. 3 said it will launch the "MGM 2020" growth initiative designed to deliver a total annualized EBITDA increase of $300 million.
MGM intends to improve operational efficiencies by becoming more centralized and enacting a digital transformation to drive revenue growth. Of the anticipated earnings uplift, $200 million is expected to be achieved in 2020, with the additional $100 million made by 2021-end.
Labor savings are expected to generate $100 million of the EBITDA improvement, with sourcing and revenue optimization each accounting for $50 million, the company said.
MGM expects its digital transformation to grow EBITDA by $100 million. For the next three years, the casino operator will reinvest part of its annual capital expenditure budget to technology advancements that improve data, pricing, digital and loyalty capabilities.