4th Feb 2025 12:58
(Alliance News) - Entain PLC on Tuesday said its US betting joint venture, BetMGM LLC, should break-even this year after sales accelerated in the second half of 2024.
BetMGM, is jointly owned by Entain and MGM Resorts International.
Entain said BetMGM's iGaming offering, strengthened sports product and enhanced player engagement had delivered accelerating growth and performance metrics through 2024.
As a result, it expects to be earnings before interest, tax, depreciation and amortisation positive in 2025 with net revenue of USD2.4 billion to USD2.5 billion.
In response, shares in Entain, which also owns bookmakers Betfair and Paddy Power, surged 7.8% to 749.50 pence each in London on Tuesday afternoon.
In 2024, BetMGM reported net revenue of USD2.10 billion, up 7.1% from USD1.96 billion a year prior.
By product, iGaming revenue increased 13%, online sports revenue rose 4% although retail fell 40%.
Revenue accelerated in the second half with adjusted net revenue up 19% compared to just 6% in the first six months of 2024.
BetMGM recorded an Ebitda loss of USD244 million, narrowed from USD827 million a year prior, including USD50 million negative impact from "favourable" sporting results. On a normalized basis, fourth quarter Ebitda trended towards breakeven demonstrating marketing optimization and growing operational leverage, it noted.
Average monthly users increased 14% to 946,000.
BetMGM reiterated its confidence in the pathway to USD500 million Ebitda supported by "scale, revenue growth and operational leverage".
By Jeremy Cutler, Alliance News reporter
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