BetMGM FY net revenue up 7% as bosses expect positive EBITDA in 2025
Investments in igaming fuels 13% leap in division’s revenue against 2023, alongside record active users and further gains from Angstrom Sports-powered OSB offering
BetMGM has reported $2.1bn in full-year 2024 net revenue, which was a rise of 7% year on year (YoY), as management pointed to a strengthened product and “enhanced player engagement” as key drivers.
Revenue for the MGM Resorts International and Entain US- and Ontario-facing JV jumped from 2023’s $1.96bn, while on an adjusted basis, the topline figure leapt 13%.
Entain’s share price has spiked more than 8% since the results were published at 12pm GMT, up to 751p at the time of writing.
BetMGM also announced that adjusted EBITDA losses during the 12 months widened to $244m, in line with previous expectations, as management had pegged 2024 as a “year of investment”.
In comparison, 2023’s adjusted EBITDA losses amounted to $62m. However, BetMGM said it remains confident that 2025 will return a positive adjusted EBITDA.
It was highlighted that the EBITDA losses also included around $50m of negative impact from December’s “highly customer favourable” sports results in the NFL.
BetMGM said: “On a normalised basis, Q4 EBITDA trended towards breakeven, demonstrating marketing optimisation and growing operational leverage.”
Adjusted EBITDA losses did shrink slightly in H2 ($121m) compared to H1 ($123m), while revenue for igaming and online sports betting was higher in the second half of the year.
Online casino was the main driver for net revenue, increasing 13% YoY from $1.3bn to $1.5bn, with the operator holding a 22% market share for igaming in the US and Ontario.
On the sports betting front, revenue was up 4% YoY from $535m to $554m on the back of handle increasing 20% from $10.9bn to $13.1bn.
The small uptick in sports betting net revenue was matched by a decline in hold, dipping from 9.6% in 2023 to 8.6% last year.
Online sports betting GGR market share for the period came in at 8%, giving a combined market share stabilisation of 14% for the brand, bosses said.
Average monthly actives across sports betting and online casino jumped 14% to 946,000, which BetMGM said was reflective of “strategic investment in player acquisition”.
In fact, there was record average monthly actives in Q4 too, up 55% YoY, while active player days increased due to a wider content library and free-to-play games.
In sports betting, BetMGM pointed to the power of its Angstrom Sports-powered markets in driving customer engagement.
Last year saw a 41% increase in MLB same game parlays (SGP) per active customer and a 2.2 percentage point uptick in NFL SGP bet mix.
The gains in sports betting also led to growth in cross-sell to the igaming proposition, with an 11.5 percentage point improvement in sports bettors also playing online casino.
BetMGM also called out the strength of its omnichannel single wallet product, which launched last year, allowing bettors in Nevada a seamless experience when travelling to other states.
“Nevada-acquired first-time depositors increased 61% versus the prior year football season, and the percentage of those continuing to play after their visit doubled,” the firm added.
In terms of outlook, BetMGM said full-year 2025 will be EBITDA positive, with an increase of around $250m YoY.
This would put this year’s adjusted EBITDA at a low to mid-single digit positive.
Net revenue is expected to land between $2.4bn and $2.5bn, with 2025 igaming contribution expected to exceed its 2025 performance.
Adam Greenblatt, BetMGM CEO, said 2024 had marked a year of “investment and rebuilding of momentum” for the JV.
He said: “Our successful strategic refinement saw BetMGM exit the year with encouraging run rates across our key metrics and Q4 EBITDA trend towards breakeven on a normalised basis.
“Our leading igaming business continues to grow strongly and deliver attractive returns. We also have an exciting opportunity in online sports, having made meaningful progress in 2024.
“Our improved product, accelerating growth and enhanced efficiency drive our expectation of online sports being contribution positive for FY 2025.” Greenblatt added: “With BetMGM’s renewed acceleration across both igaming and online sports we expect to achieve positive EBITDA in 2025, and our scaled podium position in the world’s largest gaming market underpins our confidence in our pathway to $500m EBITDA in the coming years.”