BetMGM on ‘path to profitability’ following strong H1 performance

Profitability concept
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BetMGM has reported that it is on the “path to profitability” after achieving positive EBITDA for the second quarter. The brand expects to hit near the upper end of its fiscal year 2023 revenue guidance.

In an H1 2023 trading update, the jointly owned MGM Resorts International and Entain operator declared net revenue for the period of $944m, including a same-state growth of 25 per cent from digital operations.

Same-state CPAs improved by eight per cent during the period in comparison to the previous year, while bonus optimisation and the player management programme have made a positive impact as well.

As a result, BetMGM has claimed that it is on the path to delivering the upper end of its FY2023 revenue guidance range of $1.8bn to $2bn. 

The operator also stated that a positive Q2 EBITDA has been achieved and that it remains on track to achieve a positive EBITDA for the second half of the year as well.

CEO Adam Greenblatt commented: “I am pleased with the significant progress we have made during the first half of 2023 as we continue our strong growth and remain on our path to profitability. 

“Our financial guidance for the year remains on track – we expect to deliver $1.8bn to $2bn in full-year revenue, as well as to be EBITDA positive in the second half of 2023. In fact, we have already achieved positive EBITDA for the full second quarter of this year.”

Part of BetMGM’s expectation for a positive EBITDA for H2 includes investing in upcoming launches in Kentucky and North Carolina, as well as the operator itself becoming self-sustaining with no additional equity investment from MGM Resorts or Entain beyond the previously committed $150m.

Contributions towards the strong H1 include online sports betting launches in Ohio, Massachusetts and Puerto Rico, as the operator is now live across 26 North American jurisdictions.

Regarding market share, BetMGM has reported a 27 per cent market share in igaming and an 11 per cent market share in online sports betting, with a 13 per cent share in markets where it was active from market launch.

Acquisitions and partnerships from Entain and MGM Resorts have also assisted with BetMGM’s growth. 

The operator highlighted that Entain’s acquisition of pricing and risk specialist Angstrom is expected to enhance its sports betting offering, while MGM Resorts’ partnership with Marriott will bring more reward opportunities to players.

With the goal to provide a seamless customer experience, the operator also stated that it is keeping momentum with the rollout of a single account single wallet.

Looking ahead, Greenblatt noted that BetMGM’s focus is on building a business that is sustainable while creating a safe gambling environment, following on from responsible gambling remaining a focus for the operator throughout H1. 

During the period, BetMGM agreed to a five-year partnership extension with GameSense to continue providing customers with responsible gambling information and support, while the operator was also awarded accreditations from the Responsible Gambling Council for responsible gambling and player protection integrations.

The CEO concluded: “Our focus remains on building a sustainable, scalable and returns-focused business with leading products that our players enjoy responsibly. 

“We look forward to the remainder of the year, buoyed by ongoing product improvements, tremendous support from our shareholders providing access to new assets and partnerships, and – above all – our extraordinary team at BetMGM.”