28th Apr 2025 13:16
(Alliance News) - Entain PLC on Monday said its US joint venture BetMGM swung to a profit in the first quarter of 2025, supported by strong growth in online gaming and sports betting revenues, and reaffirmed its guidance for the full year.
The London-listed sports betting and gaming company said BetMGM reported first-quarter earnings before interest, taxes, depreciation and amortisation of USD22 million, compared to a USD132 million loss a year earlier.
Net revenue for the three months to March 31 rose 34% year-on-year to USD657 million from USD489 million, driven by a 27% increase in iGaming revenue and a 68% surge in online sports revenue.
Total betting handle rose 29% to USD4.09 billion, with an improvement in net gaming revenue margin to 4.8% from 3.6% a year earlier.
Entain said BetMGM's first-quarter performance benefited from a leading iGaming offering, stronger player engagement, and a refined approach to player management, despite customer-friendly outcomes in some key sports events.
Chief Executive Officer Adam Greenblatt said BetMGM had an "encouraging start" to 2025: "The momentum we built in the second half of 2024 continued into the first quarter as we implement our powerful iGaming strategy, enabling us to grow faster than the market and at scale."
Average monthly active users increased 6% year-on-year to around 1.07 million, with iGaming players seeing particularly strong growth, Entain said.
Looking ahead, Entain reaffirmed its expectation for BetMGM to deliver positive earnings before interest, taxes, depreciation, and amortisation for the full year 2025, with net revenue guidance maintained at USD2.4 billion to USD2.5 billion. It also reiterated its longer-term goal for BetMGM to achieve USD500 million in Ebitda in the coming years.
BetMGM is jointly owned by Entain and MGM Resorts International.
Shares in Entain were up 7.7% at 633.41 pence in London on Monday afternoon.
By Eva Castanedo, Alliance News reporter
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