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 finished FY 2022 with a strong financial performance
BetMGM has established itself as a leading sports betting and iGaming operator in North America
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
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
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SOURCE BetMGM
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