BetMGM, the U.S. betting company jointly owned by Entain and MGM Resorts International, has announced that it achieved positive EBITDA in the second half of 2023. This milestone was driven by strong organic growth, with revenue at the top end of the forecast range for the full year.
Increased Revenue and Digital Growth
Net revenue from operations is expected to rise by 36% to $1.96 billion for the year, surpassing the initial guidance range of $1.8 billion to $2.0 billion. Furthermore, same-state net revenue from digital operations experienced a growth of 14% during this period.
Outlook for the Year
Despite anticipating a loss before interest, taxes, depreciation, and amortization of $67 million for the year, BetMGM remains optimistic about its future prospects. The achievement of EBITDA profitability in the latter half of 2023 validates the effectiveness of their business model. It also provides a solid foundation for further investment to expand their sports offering through the integration of Angstrom and leverage their untapped Las Vegas omni-channel advantages.
Long-Term Goals
BetMGM has reiterated its EBITDA guidance target of approximately $500 million by 2026. As they continue to focus on growth and innovation, they are determined to capitalize on opportunities to enhance their market position.
CEO Adam Greenblatt stated, "The attainment of EBITDA profitability over the last three quarters of 2023 validates the effectiveness of our business model and provides the basis from which to invest further in expanding our sports offering through the integration of Angstrom and leveraging our largely untapped Las Vegas omni-channel advantages."
Positive Market Response
Following this announcement, Entain shares saw an increase of 1.25% at 1442 GMT, reflecting the market's confidence in BetMGM's performance and future potential.
