MGM Resorts' Strategic Moves: Enhancing Market Position Insights

Recent acquisitions and market expansion strategies

MGM Resorts is actively enhancing its market position through significant investments in sports and iGaming, including the expansion of BetMGM and the acquisition of Push Gaming. They are also exploring new opportunities in New York and digital markets, aiming for sustained growth and profitability.

"We have stated that 2024 would be an investment year, recognizing that we've lost shares in sports and that it was impacting our leading market position in iGaming, we righteously decided to invest heavy into our sports product and continue to invest in customer acquisitions for iGaming so long as we saw both market growth and overall market share growth. For the record, BetMGM was also profitable in the second quarter of '24, driven by our iGaming business, which annually contributes about $400 million to the overall business." --- (MGM, earning call, 2024/Q2)

"We'll maintain our market-leading positions in the regional markets, including an expansion in New York and generating a growing dividend from MGM China. Next, we anticipate generating free cash flow from our digital businesses in the coming years as BetMGM reaches an inflection point and LeoVegas delivers on its numerous market entries." --- (MGM, earning call, 2024/Q2)

"Over the next few years, we will focus on expanding our sports platform and making further investments in our new owned and operated fully owned and operated BetMGM markets. Back to you, Bill." --- (MGM, earning call, 2024/Q2)

"We continue to explore potential development or investment opportunities, such as expanding our global online gaming presence and pursuing a commercial gaming facility in New York, which may require cash commitments in the future." --- (MGM, sec filing, 2024/Q1)

"We found this through our acquisition of Push Gaming in 2023. Our strategy with Push is to develop games that are not only exclusive to our owned and operated platforms, but also to create titles that can be marketed to other operators." --- (MGM, earning call, 2024/Q2)

Innovations in customer experience and engagement

MGM Resorts is enhancing customer experience and engagement through strategic partnerships, such as with Viral Nation for digital presence, and by leveraging unique offerings in gaming. Their focus on a customer-centric culture, driven by leadership like Keith Barr, aims to capture greater market share in Las Vegas.

"Viral Nation, a leader in Social-First transformation, renowned for its expertise in creating impactful campaigns and fostering authentic connections between brands and consumers, will collaborate with MGM Resorts to amplify the brand's presence and engagement within the rapidly evolving digital landscape." --- (MGM, press release, 2024/06/11)

"In that time, Barr successfully drove innovation and internal changes that increased revenues, improved operational efficiency and built a more customer-centric culture at IHG." --- (MGM, press release, 2024/08/21)

"We love the long-term prospects and we enjoy having a partner during this development stage that is equally focused on the business." --- (MGM, earning call, 2024/Q1)

"We believe the content, celebrity talent and sophisticated gaming experience that we will offer – all from the trusted and highly reputable brands of MGM Resorts – will be unmatched in the industry." --- (MGM, press release, 2024/06/20)

"And if you're talking about the, I guess, capturing in-market share of our customers' spend while they're here in Las Vegas." --- (MGM, earning call, 2024/Q2)

Marketing strategies and consumer engagement

MGM Resorts is enhancing its marketing strategies through a partnership with Viral Nation for influencer marketing, aiming to leverage social media for impactful engagement. Additionally, their commitment to diversity, equity, and sustainability aligns with consumer values, contributing to a positive market share growth of 47%.

"Together with MGM Resorts, we're poised to showcase the power of social media in delivering impactful business outcomes. Viral Nation will support MGM Resorts with influencer marketing strategy, execution and implementation across its entire brand ambassador program, all backed by Viral Nation's award-winning, Social-First technology. About MGM Resorts International" --- (MGM, press release, 2024/06/11)

"So, we haven't seen that yet, but we're watching very, very closely to see how the consumer is behaving both in the moment and as they book to stay with us.What can we do to the extent that the consumer was to soften a little bit?" --- (WYNN, earning call, 2024/Q2)

"And could this just be kind of a step forward for another thing, how many brands do you think makes the most sense in your consumer data?" --- (CZR, earning call, 2024/Q1)

"The framework for these goals aligns with the United Nations Sustainable Development Goals and is centered on three pillars: fostering diversity, equity and inclusion, philanthropy and community engagement, and environmental sustainability." --- (MGM, press release, 2024/05/01)

"And in March, we returned with 47% market share. And so we are pleased by where that business is going directionally as well as the balance of our marginals." --- (MGM, earning call, 2024/Q1)

Financial performance and profitability analysis

MGM Resorts' financial performance is bolstered by a 3% revenue growth driven by higher occupancy and strategic partnerships, particularly with Marriott. The company is also focused on free cash flow growth, indicating strong financial returns and a positive outlook for the remainder of the year.

"BetMGM believes this presentation, which it uses for its own analysis of operations, is useful in that it reflects the true economic performance of the business." --- (MGM, press release, 2024/07/29)

"As Anthony said, Hotel and F&B hit set first quarter records, and both Hotel and F&B overcame – the revenue overcame the increases in union cost to deliver more profitability to us." --- (CZR, earning call, 2024/Q1)

"Net revenues grew 3%, driven by both higher rate and occupancy. Our strategic relationship with Marriott contributed to our performance this quarter now with over 410,000 room nights booked." --- (MGM, earning call, 2024/Q2)

"We're excited by the progress we're making as a company against our strategic priorities and anticipate carrying our current momentum forward into the back half of the year. We continued to deliver on our Free Cash Flow growth algorithm in the second quarter, driving strong financial returns thanks to a solid baseline of cash flow from our domestic resorts, the continued growth of our digital business, and the resumption of dividends from MGM China, said Jonathan Halkyard, CFO and Treasurer of MGM Resorts International." --- (MGM, press release, 2024/07/31)

Sustainability initiatives and corporate responsibility

MGM Resorts is committed to sustainability and corporate responsibility, aiming to reduce its carbon footprint significantly by 2025 and 2030. Their initiatives include promoting responsible gaming and fostering an inclusive workplace, all under the philosophy of "Embracing Humanity and Protecting the Planet."

""As we continue the journey toward greater sustainability, we remain dedicated to finding new ways to reduce our carbon footprint, conserve resources and inspire others to join in building a more sustainable world for generations to come." In 2023, the company achieved two notable goals related to carbon emissions: reduce emissions by square foot by 45% by 2025 and reduce emissions per square foot by 50% by 2030." --- (MGM, press release, 2024/09/12)

"These tools are designed to help players manage their budgets, stay within their limits, and promote a responsible and sustainable entertainment experience." --- (MGM, press release, 2024/08/30)

"Through its 'Focused on What Matters: Embracing Humanity and Protecting the Planet' philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates." --- (MGM, press release, 2024/06/26)

"Through its 'Focused on What Matters: Embracing Humanity and Protecting the Planet' philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates." --- (MGM, press release, 2024/09/19)

"This highest-rated tier is awarded to organizations that excel in three key areas: effective practices in the recruitment, retention and advancement of people from underrepresented groups; fostering an inclusive corporate culture including leadership accountability; and demographic workforce diversity." --- (MGM, press release, 2024/08/20)

Industry trends and competitive landscape

The competitive landscape for MGM Resorts is evolving, with industry players noting shifts in market share and RevPAR growth. MGM's own performance reflects these dynamics, as it navigates a post-COVID normalization while facing increased competition from peers like Caesars, Wynn, and Marriott.

"Our historical operating results may not be indicative of our future results of operations because of the factors described in the preceding paragraph and the changing competitive landscape in each of our markets, including changes in market and societal trends, as well as by factors discussed elsewhere herein." --- (CZR, sec filing, 2024/Q1)

"Everything seemed to flow through very nicely. In terms of the competitive landscape that you're seeing into May now relative to perhaps what you're seeing last quarter or fourth quarter more specifically, could you kind of characterize what's [Technical Difficulty] the market outlook (ph)?" --- (WYNN, earning call, 2024/Q1)

"And Bill, you touched on the competitive environment there. Your market share in January was well documented to be high, but your average from the mass table market share over the quarter was obviously lower, implies a lower exit rate." --- (MGM, earning call, 2024/Q1)

"While overall industry RevPAR growth is normalizing post-COVID, we continue to gain RevPAR index across our portfolio and increase our market share of global hotels." --- (MAR, earning call, 2024/Q1)

"And then when you get into the sort of the middle tiers and below, there is us and a couple of others that not to be competitive that sort of maybe fight for second place when we are not available." --- (HLT, earning call, 2024/Q1)