LAS VEGAS - MGM Resorts (NYSE:MGM) International (NYSE: MGM) has announced the appointment of hospitality veteran Keith Barr to its Board of Directors. Barr, who previously held the CEO position at IHG Hotels & Resorts (IHG), brings over three decades of industry experience to the MGM Resorts board.
Barr's tenure at IHG Hotels & Resorts, from 2017 to 2023, was marked by a focus on innovation, increased revenues, and operational efficiency. His leadership roles at IHG also included Chief Commercial Officer and various executive positions across different regions, including Greater China and Australia and New Zealand. His appointment as the 12th board member of MGM Resorts is seen as a strategic move to strengthen the company's leadership with his global hospitality expertise.
Paul Salem, Chair of the MGM Resorts Board of Directors, highlighted Barr's leadership skills and innovative vision, which he believes will contribute to MGM Resorts' continued growth. CEO & President of MGM Resorts, Bill Hornbuckle, expressed enthusiasm for Barr's future contributions to the company's international growth strategy and commitment to world-class guest experiences.
In response to his appointment, Barr expressed his honor in joining MGM Resorts' leadership and his eagerness to apply his global hospitality knowledge to the company's operations.
MGM Resorts International is a global entertainment company with a portfolio that includes hotels, casinos, and a variety of entertainment and dining options. The company is also involved in sports betting and online gaming through BetMGM, LLC, and LeoVegas AB, and is pursuing expansion in Asia.
This announcement is based on a press release statement and contains forward-looking statements regarding the company's strategy and growth, which involve risks and uncertainties. The company has cautioned that these statements are not guarantees of future performance and are subject to change.
In other recent news, MGM Resorts International reported an increase in net revenues in both Las Vegas and Macau during its second-quarter 2024 earnings call. The company saw a 3% growth in Las Vegas revenues and a notable 37% surge in MGM China (OTC:MCHVY) revenues, with a market share reaching 16%. The profitability of BetMGM was highlighted, primarily driven by the success of its iGaming business.
MGM Resorts also unveiled plans for substantial investments in luxury resorts on the Las Vegas strip and digital businesses, targeting mid-teens free cash flow per share growth through 2028. The company's strategic moves in sports betting and iGaming, including acquisitions and partnerships, aim to foster organic growth and long-term returns.
These recent developments indicate MGM Resorts' commitment to its growth strategy. The company's optimism is evident in its plans for its Las Vegas properties, digital ventures, and expansion into new markets such as Japan, the UAE, and New York. It's worth noting that MGM Resorts has made strategic acquisitions to own its tech ecosystem and develop proprietary iGaming content.
While there were some bearish highlights, including underperforming room rates at certain properties and uncertainties surrounding the Hard Rock and Tropicana properties, the company remains focused on its growth strategy. MGM Resorts aims for significant long-term returns and targets a double-digit stabilized return by 2027.
InvestingPro Insights
As MGM Resorts International (NYSE: MGM) welcomes Keith Barr to its Board of Directors, the company's stock performance and financial health remain key areas of focus for investors. According to InvestingPro data, MGM's market capitalization stands at $12.05 billion, reflecting its significant presence in the entertainment and hospitality industry. The company's P/E ratio is currently at 14.88, which offers a glimpse into investor expectations of future earnings growth.
InvestingPro Tips reveal that MGM's management has been actively buying back shares, indicating confidence in the company's valuation and future prospects. Additionally, the company's shareholder yield is considered high, which could be attractive to investors seeking returns through both capital gains and potential buybacks. It's worth noting that MGM does not pay dividends, which aligns with the company's strategy of reinvesting earnings for growth and share repurchases.
From a performance standpoint, MGM's stock has experienced volatility and has underperformed in the past month, with a 1-month price total return of -13.16%. Nevertheless, analysts remain optimistic, as evidenced by eight analysts revising their earnings estimates upwards for the upcoming period. This optimism is further supported by the company's robust revenue growth over the last twelve months, which stood at 15.12%.
For investors who are considering MGM Resorts International as part of their portfolio, additional insights are available. There are 9 more InvestingPro Tips listed on the platform, providing a deeper dive into the company's financial health and market performance. To explore these tips and gain a comprehensive understanding of MGM's investment potential, visit https://www.investing.com/pro/MGM.
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