BetMGM achieves positive EBITDA target in H1 2023 as revenue hits $944m
US joint venture business reveals expected 2023 revenue of $2bn with 300 basis point increase in net gaming revenue margin from sportsbook operations
BetMGM has reported net gaming revenue (NGR) of $944m (£727.9m) in the first half of 2023, with the operator reaching a positive company EBITDA figure during the second quarter of the period.
Releasing its latest financial update, the MGM and Entain joint venture confirmed it is on track to report full year 2023 revenue of between $1.8bn (£1.39bn) and $2bn (£1.54bn).
The sportsbook and icasino operator also revealed it is on track to achieve a positive company EBITDA during the second half of 2023.
Drilling down into individual metrics, BetMGM confirmed 25% same-state revenue growth from its online operations during H1 2023, with same-state costs per acquisition (CPA) improving by 8% year on year (YoY) over the same period.
BetMGM’s sports NGR margin increased by 300 basis points YoY during the first half of 2023, with digital sports revenue per player up by 65% for those players acquired in 2021 or earlier.
In respect of sportsbooks, BetMGM confirmed the positive profit contribution during Q2 2023 of each of its sportsbooks that had launched in the period between 2019 and 2022.
BetMGM’s total market share across igaming and sports betting amounted to 18% in H1 2023.
In isolation, the firm’s igaming market share amounted to approximately 27%, with sports betting market share amounting to just 11% in H1 2023, or a 13% share in markets where BetMGM was a first mover in launching in the state.
The operator revealed that its bonus optimisation strategy, together with its player management program, were continuing to have a “significantly” positive impact on the business, allowing for enhanced gross gambling revenue (GGR) to NGR conversion.
BetMGM is now live in 26 jurisdictions, including the Canadian province of Ontario, with the ability to access 48% of the adult population in the US. During H1 2023, the operator increased its sportsbook operations with launches in Ohio, Massachusetts, and Puerto Rico.
BetMGM CEO Adam Greenblatt welcomed the positive financial results and the achievement of the positive EBITDA target during Q2 2023.
“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,” Greenblatt said.
“Our financial guidance for the year remains on track and we expect to deliver $1.8 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.
“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,” Greenblatt concluded.
Parent companies Entain and MGM Resorts have confirmed their expectation that BetMGM will become self-sustaining in the second half of 2023, reaffirming a retrospective commitment to invest no additional equity in the business aside from the $150m already committed in 2023.
BetMGM’s operations are expected to be further augmented by Entain following its acquisition of Angstrom Sports, a deal announced earlier this month. The London-based risk trading and analytics firm is expected to be used to grow BetMGM’s UX across parlay betting and in-play bets.
The firm also agreed a loyalty marketing agreement with international hotel chain Marriott Bonvoy, which will allow Marriott customers to earn BetMGM rewards points and exchange BetMGM rewards points for Marriott Bonvoy loyalty points.