BetMGM Expects 2023 Revenue to Hit High End of $1.8B to $2B Guidance

BetMGM, the online casino and sportsbook operator, announced that its 2023 revenue is expected to reach the top end of the previously forecasted range of $1.8 billion to $2 billion. The company also reiterated that it will achieve profitability in the latter half of this year.

During a conference call with analysts on Monday, CEO Adam Greenblatt stated that BetMGM is on track to meet its financial targets, with an anticipated revenue for 2023 and potential profitability in the second half of the year. The company is jointly owned by MGM and UK-based gaming giant, Entain Plc, with operations available in 28 jurisdictions and 38 retail sportsbooks across North America.

“We have significantly improved our financial position, growing earnings before interest, taxes, depreciation, and amortization (EBITDA) by well over $300 million and achieving EBITDA profitability in the second half, putting us in a position to be self-funded from here on,” Greenblatt explained to analysts.

This ability to self-fund is particularly positive for BetMGM’s parent companies, Entain and MGM, which have contributed $1.26 billion to the online gaming unit to date. Moreover, BetMGM is looking forward to generating $500 million in EBITDA in 2026.

The company’s progress has been crucial, especially in a competitive environment where rivals like DraftKings and FanDuel are also making strides toward profitability. Both DraftKings and FanDuel have reported impressive financial results, with the latter expected to achieve profitability for the entire year.

BetMGM’s focus on iGaming has also been a significant driver of growth, attributed to better margins and increased regional expansion. The company’s CFO highlighted the growth in net gaming revenue (NGR) margin in iGaming and the upsurge in recreational players, who favor slots over table games, as a key factor in the company’s overall success.

In the midst of heightened competition, BetMGM is also concentrating on product advancements, aiming to enhance its app’s user interface, create new payment methods for deposits and withdrawals, and expand its range of markets.

The industry’s intense competition underscores the importance of staying ahead of the curve through product development and providing a seamless user experience. BetMGM is making strides in these areas, setting the stage for continued success in the rapidly evolving online gaming and sports betting sector.

By admin

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