BetMGM expected to be EBITDA positive in the
Second Half of 2023
JERSEY
CITY, N.J., Jan. 26,
2023 /PRNewswire/ -- BetMGM, one of the leading
sports betting and iGaming operators in North America, jointly owned by MGM Resorts
International (NYSE: MGM) ("MGM Resorts") and Entain plc (LSE: ENT)
("Entain"), is today providing an update on performance and outlook
for 2023.
![BetMGM logo (PRNewsfoto/MGM Resorts International) BetMGM logo (PRNewsfoto/MGM Resorts International)](https://mma.prnewswire.com/media/1279873/BET_MGM_Logo.jpg)
- BetMGM finished FY 2022 with a strong financial
performance
-
- Net revenue from operations of $1.44
billion, ahead of prior guidance of over $1.3 billion
-
- Same-state growth in net revenue from digital operations of
51%
- EBITDA loss of approximately $440
million, in line with prior guidance2
- Financial outperformance driven by:
-
- Higher gross gaming margins resulting from improved customer
experience and other product improvements
- Same state CPAs reduced by 21% year-over-year due to
data-focused marketing strategy and increased scale
- Improved approach to player bonusing delivered by our data
science team
- BetMGM has established itself as a leading sports betting and
iGaming operator in North
America
-
- Top 3 operator in the U.S. for sports betting and iGaming
-
- Continued market leadership in iGaming with approximately 30%
market share3
- Online sports betting market share of 13%, with 20% share in
markets where BetMGM was live on day one3
- Our Q4 2022 online sports net revenue margin has doubled versus
Q4 2021 as we continue to optimize our bonus environment
- Live in 25 jurisdictions with access to approximately 45% of
the adult population in the United
States as well as now operating in Ontario, Canada4
-
- Expanded online footprint in 2022 with launches in six new
markets: New York, Louisiana, Illinois, Ontario, Kansas, and Maryland
- Opened four new retail sportsbooks: Nationals Park in
Washington, DC, Casino del Mar in
Puerto Rico, The Cosmopolitan in
Las Vegas, and at State Farm
Stadium, the first retail sportsbook at an NFL stadium and home of
the 2023 Super Bowl
- Launched in Ohio on
January 1, 2023, with online sports
betting and two retail sportsbooks at MGM Northfield Park and at
the Reds' Great American Ball Park
- Furthered our commitment to industry leadership in promoting
player safety and responsible gaming
-
- Created the first industry-led online responsible gaming
standards in collaboration with a coalition of other online gaming
operators
- Increased funding for gaming research, joined the National
Council on Problem Gambling and prioritized customer service across
all facets of our business
- Implemented the award-winning responsible gaming program,
GameSense, companywide
- Committed to continuously expanding our product tools to
proactively monitor customers and curate messaging to ensure safe
and responsible play
- Winner of several industry awards including: Casino Operator of
the Year by EGR North America; Casino Operator of the Year at SBC
Awards North America; Online Casino of the Year by the American
Gambling Awards; and identified as one of the Best Workplaces in
New York by Fortune
- BetMGM is well positioned to achieve net revenue from
operations of between $1.8 and
$2 billion in FY 2023 and be EBITDA
positive in the second half of 2023
- Wholly supportive of BetMGM's stellar performance and with
confidence in management's plan, MGM Resorts and Entain expect to
invest a combined additional $150
million in FY 2023
-
- This brings the total combined investment to build the company
in less than 5 years to approximately $1.25
billion
Conference Call:
BetMGM will host a conference call at
10:00 a.m. Eastern Time today, which
will include an overview of its results, followed by a Q&A
session. The call will be accessible via webcast or dial in –
registration details below:
The live webcast will be accessible at: Webcast
Registration.
For those wishing to ask a question, please register at: Dial-in
Registration. Upon registration, dial-in details and a personalized
PIN will be provided.
The webcast details and replay will also be accessible via
http://investors.mgmresorts.com/investors/events-and-presentations/
OR
https://entaingroup.com/investor-relations/results-centre/.
Management Commentary:
Adam
Greenblatt, Chief Executive Officer of BetMGM, commented:
"The talented team at BetMGM continues to execute our plan with
purpose, passion, and discipline. 2022 was a year in which we
delivered against many key strategic initiatives and achieved
several company milestones, including exceeding our financial
targets, launching a redesigned BetMGM mobile app and furthering
our commitment to Responsible Gambling. With continued and
unwavering support from our shareholders, we look to 2023 confident
in achieving further key milestones, including $1.8 to $2 billion
in net revenue from operations and being EBITDA positive in the
second half of 2023."
Notes:
- FY 2022 net revenue for BetMGM on a GAAP basis is expected to
be approximately $1,403 million,
which includes approximately $55
million related to Nevada MGM operations for which BetMGM
records on a net basis as BetMGM is considered to be the agent in
the Nevada transactions for GAAP
purposes.
- FY 2022 EBITDA is an unaudited estimate.
- Market share for last three months ending October 2022 by GGR including only U.S. markets
where BetMGM was active; internal estimates used where
operator-specific results are unavailable.
- BetMGM operates iGaming and Online Sports Betting in five
markets and Sports Betting only in twenty markets.
Forward-looking statements
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which involve substantial
risks and/or uncertainties, including those described in the MGM
Resorts International public filings with the Securities and
Exchange Commission. BetMGM has based forward-looking statements on
management's current expectations, assumptions and projections
about future events and trends. Examples of these statements
include, but are not limited to, BetMGM's expectations regarding
its financial outlook (including forecasted net revenues from
operations, EBITDA, and amounts expected to be invested by MGM
Resorts and Entain in 2023), projected market share position, and
its expected growth in new and existing jurisdictions. These
forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, that could cause actual results or outcomes to differ
materially from those discussed in the forward-looking statements.
Included among the important factors that could cause actual
results to differ materially from those indicated in such
forward-looking statements are: the significant competition within
the gaming and entertainment industry; BetMGM's ability to execute
on its business plan; changes in applicable laws or regulations,
particularly with respect to iGaming and online sports betting;
BetMGM's ability to manage growth and access the capital needed to
support its growth plans; and BetMGM's ability to obtain the
required licenses, permits and other approvals necessary to grow in
existing and new jurisdictions. In providing forward-looking
statements, BetMGM is not undertaking any duty or obligation to
update these statements publicly as a result of new information,
future events or otherwise, except as required by law. If BetMGM
updates one or more forward-looking statements, no inference should
be drawn that it will make additional updates with respect to those
other forward-looking statements.
Non-GAAP Financial Information
This press release
includes net revenue from operations, which has not been prepared
in accordance with GAAP. 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. If BetMGM
presented net revenue from operations in accordance with GAAP, then
BetMGM would present the revenues associated with its Nevada digital and retail sports betting
operations differently, until such time as BetMGM is licensed as a
Nevada gaming operator. Currently
under GAAP, its calculation of Net Revenue would be on a basis net
of operating costs, such that the GAAP reported Net Revenue would
be lower than the Net Revenue reported herein, with Net Income
remaining the same.
About BetMGM
BetMGM is a market leading sports betting
and gaming entertainment company, pioneering the online gaming
industry. Born out of a partnership between MGM Resorts
International (NYSE: MGM) and Entain Plc (LSE: ENT), BetMGM has
exclusive access to all of MGM Resorts' U.S. land-based and online
sports betting, major tournament poker, and online gaming
businesses. Utilizing Entain's U.S.-licensed, state of the art
technology, BetMGM offers sports betting and online gaming via
market leading brands including BetMGM, Borgata Casino, Party
Casino and Party Poker. Founded in 2018, BetMGM is headquartered in
New Jersey. For more information,
visit http://www.betmgminc.com/.
About MGM Resorts International
MGM Resorts
International (NYSE: MGM) is an S&P 500® global entertainment
company with national and international locations featuring
best-in-class hotels and casinos, state-of-the-art meetings and
conference spaces, incredible live and theatrical entertainment
experiences, and an extensive array of restaurant, nightlife and
retail offerings. MGM Resorts creates immersive, iconic experiences
through its suite of Las
Vegas-inspired brands. The MGM Resorts portfolio encompasses
32 unique hotel and gaming destinations globally, including some of
the most recognizable resort brands in the industry. The Company's
50/50 venture, BetMGM, LLC, offers sports betting and online gaming
in North America through
market-leading brands, including BetMGM and partypoker, and the
Company's subsidiary LeoVegas AB offers sports betting and online
gaming through market-leading brands in several jurisdictions
throughout Europe. The Company is
currently pursuing targeted expansion in Asia through the integrated resort opportunity
in Japan. 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.
The global employees of MGM Resorts are proud of their company for
being recognized as one of FORTUNE® Magazine's World's Most Admired
Companies®. For more information, please visit us at
www.mgmresorts.com. Please also connect with us @MGMResortsIntl on
Twitter as well as Facebook and Instagram.
About Entain plc
Entain plc (LSE: ENT) is a FTSE100
company and is one of the world's largest sports-betting and gaming
groups, operating both online and in the retail sector. The Group
owns a comprehensive portfolio of established brands; Sports brands
include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds,
Sportingbet, Sports Interaction and SuperSport; Gaming brands
include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and
PartyCasino. The Group owns proprietary technology across all its
core product verticals and in addition to its B2C operations
provides services to a number of third-party customers on a B2B
basis.
The Group has a 50/50 joint venture, BetMGM, a leader in sports
betting and iGaming in the US. Entain provides the technology and
capabilities which power BetMGM as well as exclusive games and
products, specially developed at its in-house gaming studios. The
Group is tax resident in the UK, operating in over 40 regulated or
regulating territories. Entain is a leader in ESG, a member of
FTSE4Good, the DJSI and is AA rated by MSCI. The Group has set a
science-based target, committing to be carbon net zero by 2035 and
through the Entain Foundation supports a variety of initiatives,
focusing on safer gambling, grassroots sport, diversity in
technology and community projects. For more information see the
Group's website: www.entaingroup.com
COMPANY CONTACTS
BETMGM
ELISA
RICHARDSON
Head of Public Relations & Communications
press@betmgm.com
MGM RESORTS
Investment Community
ANDREW CHAPMAN
Director of Investor Relations
achapman@mgmresorts.com
News Media
BRIAN AHERN
Executive Director, Media Relations
media@mgmresorts.com
ENTAIN
Investment Community
DAVID LLOYD-SEED
Chief Investor Relations & Communications Officer
investors@entaingroup.com
DAVINA HOBBS
Head of Investor Relations
investors@entaingroup.com
CALLUM SIMS
Investor Relations Manager
investors@entaingroup.com
News Media
LISA ATTENBOROUGH
Head of Media Relations
media@entaingroup.com
JODIE HITCH
Media Relations Manager
media@entaingroup.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/betmgm-business-update-fy22-net-revenue-from-operations-of-1-44-billion-ahead-of-expectations-301731516.html
SOURCE BetMGM