BetMGM’s Revenue Rises 36% to $1.96 Billion in 2023 as It Eyes EBITDA Profitability
Posted on: February 8, 2024, 01:23h.
Last updated on: February 8, 2024, 01:38h.
BetMGM, the online sportsbook operator, revealed that it achieved a revenue of $1.96 billion in 2023, marking a 36% year-over-year increase. This figure falls within the previously disclosed forecast of $1.8 billion to $2 billion, putting the top line at the higher end of the range.
The company also reported that it was earnings before interest, taxes, depreciation, and amortization (EBITDA) positive in the second half of 2023, with an expected EBITDA loss for the year amounting to $67 million. BetMGM is a joint venture between MGM Resorts International and Entain Plc, and the narrowing losses and increased path to profitability could prompt MGM to make a takeover offer for the half of the online betting entity it doesn’t control or for Entain itself.
Analysts believe that investors are eagerly awaiting a transaction of some sort between Entain and MGM. David Katz, an analyst at Jeffereies, wrote in a client note, “We remain supportive of MGM acquiring the outstanding stake of BetMGM or the whole of Entain, pending terms.”
Meanwhile, speculation has been mounting that MGM could make a move on Entain or the latter’s BetMGM stake due to pressure from activist investors, some with ties to MGM, who have pushed for material change at the UK-based gaming company.
In addition to its positive financial performance, BetMGM noted that it expects to achieve $500 million EBITDA in 2026, demonstrating the company’s commitment to delivering on its promises.
Despite this good news, BetMGM acknowledged that it has work to do as it currently holds a 14% market share in the US sports wagering and iGaming markets, trailing behind rivals FanDuel and DraftKings by wide margins.
Looking ahead, potential catalysts for BetMGM in 2024 include North Carolina joining the online sports betting landscape and a full year of results from Kentucky. In terms of technology, the operator is focusing on introducing a single wallet plan and investing in new, in-house iGaming content to attract and retain customers. These strategies, combined with the company’s commitment to achieving EBITDA profitability, could help BetMGM strengthen its position in the competitive online betting market.