BetMGM expects to be in the red for FY 2024 after $123m H1 EBITDA loss
Revenue increases 9% year on year for Q2 as CEO claims roadmap and momentum gives group “confidence in BetMGM’s strong future”
BetMGM has recorded a H1 EBITDA loss of $123m (£96m) as bosses continue to point to 2024 as a year of investment for the joint venture (JV) between MGM Resorts International and Entain.
BetMGM reiterated that it is planning to continue to pump capital into the business this year, with a “greater-than-planned marketing investment in igaming” scheduled for the second half of 2024.
Other points on the roadmap for the remainder of the year include full integration of Angstrom Sports-powered markets across MLB, NBA and NFL, as well as a ‘single account, single wallet’ rollout for Nevada ahead of the NFL season.
Additional investment is expected to be funded by bank debt, according to BetMGM.
As per the group’s December 2023 guidance, BetMGM, which is live in 29 markets across North America, with access to 52% of the population, is targeting around $500m in EBITDA in 2026.
Management added that H2 EBITDA is expected to be similar to H1 performance, which would indicate 2024 EBITDA loss in the range of $240m to $250m.
Elsewhere, the firm recorded revenue of $1bn for H1 2024, representing a 6% increase when compared to the previous year.
Revenue for Q2 2024 climbed 9% year-on-year (YoY), bettering the 3% growth experienced in Q1.
The figure comprised around $978m from pure BetMGM operations, with around $30m derived from Nevada MGM Resorts.
Sports betting revenue per active customer for Q2 increased 16% YoY as management highlighted continued benefits of Angstrom Sports-powered markets across MLB.
In fact, BetMGM said active customers who placed an MLB same game parlay (SGP) rose 40% this season YoY while the volume of weekly SGPs on MLB doubled.
The company is planning for the “further integration” of Angstrom throughout the year across MLB and NBA.
On the igaming front, monthly actives jumped 18% YoY, with the launches of BetMGM Arcade and “market-leading jackpots” pegged as key growth drivers.
BetMGM now sits at 13% market share for sports betting and igaming across the US and Ontario, while market share for igaming alone is 22%.
This was helped by the operator launching its sports betting product in North Carolina in March and Washington DC in July.
Adam Greenblatt, BetMGM CEO, highlighted how the company’s H1 performance has set the tone for its future.
He said: “The first half of this year has been very important in laying the groundwork for BetMGM’s future. 2024 is a year of investment, focusing on improving our customer experience and stepping up our level of investment in players.
“We are encouraged to see this strategy delivering accelerating momentum.
“We have exceeded our goals for both acquisition and retention, which should lead to higher year-over-year revenue growth for the second half of this year into 2025.
“Our execution roadmap, building momentum and prospects ahead all support our confidence in BetMGM’s strong future,” he concluded.
The trading update comes as MGM Resorts International prepares to deliver its full H1 earnings on Wednesday 31 July.
Entain is due to release its Q2 financial results next week, on August 8, with the group also having finally named a new CEO in the shape of Gavin Isaacs, who begins the role in September.