MGM said its efforts to reduce costs and maximize operating efficiency has resulted in a greater revenue windfall than anticipated and boosted its anticipated profit growth by 0 million.
MGM previously set a $300 million profit-growth target for the end of 2017, but says unexpectedly high revenue gains resulted in a revised profit target of $400 million.
“We initially set an ambitious goal and are pleased that our employees are engaged and focused on permanently changing how we operate our business to maximize profitability through innovation and continuous improvement,” MGM CEO Jim Murren said in a statement.
Gaming industry analysts UBS Financial and JP Morgan, likewise, anticipate strong revenue growth and a positive outlook for MGM and placed a “buy” recommendation on MGM shares.
Murren recently told gaming analysts MGM has the hospitality industry’s best assets and efforts to diversify is driving more creativity and innovation than its competitors.
Among those innovations is a new solar array on top of the Mandalay Bay Convention Center. Some 5,000 solar panels cover a 20-acre area and generate more than 8 megawatts of power.
NRG Energy of New Jersey built and is in charge of the solar array, and MGM buys its power form NRG.
MGM also is focusing efforts on luring more Millennial-age visitors to its properties in Las Vegas and elsewhere.
MGM, like other casino operators, recognize traditional slots-driven casinos don’t attract Millennials nearly as well as they do older visitors, and is working to provide a more events-oriented and immersive experience for younger visitors.
MGM’s diversification with T-Mobile Arena, The Park, and pending rebranding and renovation of the Monte Carlo are intended to provide a more unique experience for non-traditional visitors to Las Vegas, especially well-traveled Millennials.
MGM also is hosting more events targeting Millennial-age tourists, including eSporting events, concerts and musical productions, and other forms of non-traditional entertainment that meet the needs of Millennials, who prefer greater interaction, immersive environments, and unique experiences to playing slops and table games.
If MGM succeeds in becoming a market leader in drawing Millennial-generation visitors, its profit goals might continue to rise.