MGM Management Shares Insights on Long-Term Strategy
During a recent earnings call, MGM management discussed long-term strategy, focusing on various aspects, including the development of BetMGM, expansion into new markets, and growth projections. The company hopes to leverage its record-breaking Q1 results to bolster expansion, consolidate its position in core markets, and achieve lasting success.
MGM Is Optimistic regarding Its International Operations
Bill Hornbuckle, CEO and President of MGM Resorts International emphasized the importance of product development for BetMGM throughout the year, highlighting its focus on soccer and other high-profile sports. Despite a challenging first quarter in the digital sector, Hornbuckle expressed optimism about the potential for long-term growth, especially in established markets like South America and LATAM.
Regarding US and international expansion, Hornbuckle discussed potential opportunities in regions such as the UAE, Thailand, and Texas. He highlighted the progress made in the UAE, anticipating the fruition of projects in Abu Dhabi or other Emirates. While dialogue with the Thailand government has been encouraging, Hornbuckle remained cautious about predicting outcomes.
As for Texas, the CEO acknowledged its significance in the US market but emphasized that immediate developments should not be expected, especially in brick-and-mortar establishments. While the region holds substantial potential, legalizing gambling in The Lone Star State still faces significant obstacles despite recent momentum in legislative discussions.
Macau Remains a Promising Jurisdiction
Answering questions from stakeholders and analysts, Jonathan Halkyard, MGM Resorts International CFO and Treasurer outlined growth projections for domestic and international operations over the next five years. He anticipated mid-single-digit growth in domestic operations, with additional growth capital investment planned for Las Vegas. In China, Halkyard expected growth rates to be equal to or higher than those in the US.
Kenneth Feng, Executive Director and President of MGM China Holdings emphasized MGM’s deep understanding of its Macau customers, particularly in the premium mass segment. He highlighted the company’s innovation and product refreshment efforts, inviting stakeholders to visit MGM properties in Macau and witness firsthand the initiatives implemented in recent years to enhance performance and competitiveness.
Overall, MGM management’s remarks during the earnings call underscored their commitment to long-term growth, focusing on product development, expansion into new markets, and customer-centric strategies to drive success in the years to come. The company plans to return excess cash to shareholders via share buybacks, ensuring sustained profitability.
