8 February
2024
BETMGM FY23
UPDATE
FY23 NET REVENUE FROM
OPERATIONS OF $1.96 BILLION AT TOP END OF
GUIDANCE
Positive EBITDA in the
Second Half of 2023
BetMGM LLC ("BetMGM"), one of the
leading sports betting and iGaming operators across North America,
jointly owned by Entain plc (LSE: ENT) ("Entain") and MGM Resorts
International (NYSE: MGM) ("MGM Resorts") is today providing an
update on performance for FY 2023.
· BetMGM
delivered a strong FY 2023 financial performance (based on
unaudited results)
o Net
revenue from operations grew 36% year over year to $1.96
billion1, at the upper-end of $1.8-$2.0 billion guidance
range2
§ Same-state
growth in net revenue from digital operations of 14%
§ Key
metrics across both iGaming and Online Sports Betting improved year
over year, including average monthly actives, FTDs, hold
percentages, bonus levels, NGR per active, and
CPAs3
o EBITDA positive in the second half of 2023 with expected FY
2023 EBITDA loss of approximately $67
million4
· Established as a leading operator across North America, live
in 28 markets with access to 49% of adult
population5
o Four
new markets launched during the year: Ohio (online and retail),
Massachusetts (online and retail), Puerto Rico (online) and
Kentucky (online and retail)
o 14%
market share in Sports Betting and iGaming in the U.S. and 22% in
Ontario6
o Secured market access with Charlotte Motor Speedway ahead of
expected March 2024 launch of newly legalised sports betting market
in North Carolina, pending regulatory approval
· Further operational progress supported by technology, product
and capability enhancements, positions BetMGM to drive growth going
forward
o Seamless execution of single account single wallet across 21
markets ahead of the 2023 NFL season
o Enhanced sports betting experience with improved
speed7, broader market coverage and new differentiated
bet types
o New
in-house and exclusive games, including Dual Play Roulette, as well
as largest progressive jackpots underpinning market leading iGaming
offering
· December 4th BetMGM business update set out strategic roadmap
to drive growth in 2024
o Expanding the depth and breadth of our sports offering by
leveraging Angstrom's sophisticated modelling to support innovative
and original products, including player-popular Same Game Parlay
("SGP"), SGP+ and new LIVE SGP products
o Continue to deliver market-leading and engaging gaming
experiences that are more personalized and differentiated,
including exclusive and MGM-branded content
o Increasingly investing in marketing and player acquisition as
sports product and player retention continue to improve
o Unlocking BetMGM's unique omnichannel advantages, particularly
in Las Vegas, Nevada
§ Launched
new improved app in January with single wallet functionality
expected later in 2024
§ Leveraging
Las Vegas sports teams and tentpole events, for example BetMGM's
first Big Game commercial featuring Tom Brady, Wayne Gretzky and
Vince Vaughn
· Reiterating guidance from December 2023 business update of
targeting approximately $500 million of EBITDA in 2026
· Recognized as Digital Operator of the Year by Global Gaming
Awards, Online Casino of the Year by American Gambling Awards, and
Casino Operator of the Year by EGR North America and SBC Awards
North America.
· Ongoing commitment to industry leadership in player safety and
responsible gaming
o Secured five-year extension with GameSense program, providing
player tools and capabilities to play responsibly
o Partnered with nine NFL teams to promote responsible gambling
in stadiums during games
o Piloted the first of its kind program with Kindbridge Health
to evaluate efficacy of offering self-excluded individuals'
referrals for problem gambling treatments
Adam Greenblatt, CEO of BetMGM,
commented:
"Our performance in 2023
demonstrates our commitment to delivering on our promises. We were
able to achieve strong organic growth, while executing against key
strategic initiatives that lay the foundation for 2024 and
beyond. The attainment of EBITDA
profitability over the last three quarters of 2023 validates the
effectiveness of our business model and provides the basis from
which to invest further in expanding our sports offering through
the integration of Angstrom and leveraging our largely untapped Las
Vegas omni-channel advantages. With this comprehensive roadmap in
place, we can focus on driving accelerated player acquisition and
retention and strengthening our current market position. This clear
strategic direction underpins our confidence in achieving our
targets and building long-term, sustainable value for
shareholders."
Notes
(1)
FY2023 net revenue for BetMGM on a GAAP basis is expected to be
approximately $1,920 million, which includes approximately $64
million related to Nevada MGM operations for which BetMGM records
on a net basis as BetMGM is considered to be the agent in the
Nevada transactions for GAAP purposes
(2)
FY2023 non-GAAP net revenue guidance established in January
2023
(3)
Key metrics include average monthly actives, first time depositors
("FTDs"), hold percentages, bonus levels, net gaming revenue per
active ("NGR per active"), and cost per acquisition
("CPAs")
(4) BetMGM has not completed its financial closing procedures for
the three months and year ended December 31, 2023 and actual
results can differ materially from these estimates. In
addition, BetMGM's independent registered public accounting firm
has not audited, reviewed or performed any procedures with respect
to these preliminary estimates. During the course of the
preparation of BetMGM's audited financial statements, BetMGM and
its auditors may identify items that would require material
adjustments to these estimates. As a result, these estimates
constitute forward-looking statements and, therefore, investors are
cautioned that they are subject to risks and uncertainties,
including possible adjustments.
(5)
BetMGM operates iGaming and Online Sports Betting in five markets
and Sports Betting only (combined online and retail) in 23
markets.
(6)
Market share for last three months ending November 2023 by GGR
including only U.S. markets where BetMGM was active; internal
estimates used where operator-specific results are unavailable.
Ontario market share reflects the three-month period through
December 2023.
(7) Google
Core Web Vitals validate that
BetMGM in now one of the fastest apps in the U.S.
Contacts:
BetMGM
|
Witek Wacinski - VP Strategy &
Development
witek.wacinski@betmgm.com
|
Entain plc
|
Investor Relations
investors@entaingroup.com
David Lloyd-Seed -
Chief Investor
Relations & Communications Officer
Davina Hobbs-
Head of Investor
Relations
Aimee Remey -
VP US Investor
Relations
Callum Sims - IR Manager
News Media
media@entaingroup.com
Lisa Attenborough -
Head of Media
Relations
Jodie Hitch - PR Manager
|
MGM
Resorts International
|
|
LEI: 213800GNI3K45LQR8L28
Forward-looking statements
This document contains certain
statements that are forward-looking statements. They appear in a
number of places throughout this document and include statements
regarding our intentions, beliefs or current expectations and those
of our officers, directors and employees concerning, amongst other
things, results of our operations, financial condition, liquidity,
prospects, growth, strategies and the business we operate. Examples
of these statements include, but are not limited to, BetMGM's
expectations regarding its financial outlook (including EBITDA
guidance). These forward-looking statements include all matters
that are not historical facts. By their nature, these statements
involve risks and uncertainties since future events and
circumstances can cause results and developments to differ
materially from those anticipated. Any such forward-looking
statements reflect knowledge and information available at the date
of preparation of this document. Among the important factors that
could cause actual results to differ materially from those
indicated in such forward-looking statements include the
significant competition within the gaming and entertainment
industry; BetMGM's ability to execute on its business plan; changes
in applicable laws or regulations, particularly with respect to
iGaming and online sports betting; BetMGM's ability to manage
growth and access the capital needed to support its growth plans;
and BetMGM's ability to obtain the required licenses, permits and
other approvals necessary to grow in existing and new
jurisdictions. In providing forward-looking statements, Entain is
not undertaking any duty or obligation to update these statements
publicly as a result of new information, future events or
otherwise, except as required by law. Other
than in accordance with its legal or regulatory obligations
(including under the Market Abuse Regulation (596/2014), the
Listing Rules, the Disclosure Guidance and Transparency Rules and
the Prospectus Rules), Entain undertakes no obligation to update or revise any such
forward-looking statements. Nothing in this document should be
construed as a profit forecast. Entain and
its directors accept no liability to third parties in respect of
this document save as would arise under English
law.
Non-GAAP Financial Information
This press release includes net
revenue from operations and estimated EBITDA, which have not been
prepared in accordance with GAAP. BetMGM believes this
presentation, which it uses for its own analysis of operations, is
useful in that it reflects the true economic performance of the
business. If BetMGM presented net revenue from operations in
accordance with GAAP, then BetMGM would present the revenues
associated with its Nevada digital and retail sports betting
operations different, until such time as BetMGM is licensed as a
Nevada gaming operator. Currently under
GAAP, its calculation of Net Revenue would be on a basis net of
operating costs, such that the GAAP reported Net Revenue would be
lower than the Net Revenue reported herein, with Net Income
remaining the same.
About BetMGM
BetMGM is a market leading sports
betting and gaming entertainment company, pioneering the online
gaming industry. Born out of a partnership between MGM Resorts
International (NYSE: MGM) and Entain Plc (LSE: ENT), BetMGM has
exclusive access to all of MGM Resorts' U.S. land-based and online
sports betting, major tournament poker, and online gaming
businesses. Utilizing Entain's U.S.-licensed, state of the art
technology, BetMGM offers sports betting and online gaming via
market leading brands including BetMGM, Borgata Casino, Party
Casino and Party Poker. Founded in 2018, BetMGM is headquartered in
New Jersey. For more information, visit
http://www.betmgminc.com/
About Entain plc
Entain (LSE: ENT) is a FTSE100
company and is one of the world's largest sports-betting and gaming
groups, operating both online and in the retail sector. The Group
owns a comprehensive portfolio of established brands; Sports brands include BetCity, bwin,
Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports
Interaction and SuperSport; Gaming brands include Foxy Bingo, Gala,
GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino.
The Group owns proprietary technology across all its core product
verticals and in addition to its B2C operations provides services
to a number of third-party customers on a B2B basis.
The Group has a 50/50 joint venture,
BetMGM, a leader in sports betting and iGaming in the US. Entain
provides the technology and capabilities which power BetMGM as well
as exclusive games and products, specially developed at its
in-house gaming studios.
The Group is tax resident in the UK
with operations in over 40 regulated or regulating territories.
Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is
AA rated by MSCI. The Group has set a science-based target,
committing to be carbon net zero by 2035 and through the Entain
Foundation supports a variety of initiatives, focusing on safer
gambling, grassroots sport, diversity in technology and community
projects. For more information see the Group's website:
www.entaingroup.com
About MGM Resorts International
MGM Resorts International (NYSE:
MGM) is an S&P 500® global entertainment company with national
and international locations featuring best-in-class hotels and
casinos, state-of-the-art meetings and conference spaces,
incredible live and theatrical entertainment experiences, and an
extensive array of restaurant, nightlife and retail offerings. MGM
Resorts creates immersive, iconic experiences through its suite of
Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31
unique hotel and gaming destinations globally, including some of
the most recognizable resort brands in the industry. The Company's
50/50 venture, BetMGM, LLC, offers U.S. sports betting and online
gaming through market-leading brands, including BetMGM and
partypoker. The Company is currently pursuing targeted expansion in
Asia through the integrated resort opportunity in Japan. Through
its "Focused on What Matters: Embracing Humanity and Protecting the
Planet" philosophy,
MGM Resorts commits to creating a more sustainable future, while
striving to make a bigger difference in the lives of its employees,
guests, and in the communities where it operates. The global
employees of MGM Resorts are proud of their company for being
recognized as one of FORTUNE® Magazine's World's Most Admired
Companies®. For more information, please visit us at
www.mgmresorts.com. Please also
connect with us @MGMResortsIntl on
Twitter as well as
Facebook and
Instagram