BETMGM BUSINESS UPDATE: FY22 NET REVENUE FROM OPERATIONS OF $1.44 BILLION, AHEAD OF EXPECTATIONS¹

Rhea-AI Summary

BetMGM, a leading sports betting and iGaming operator, announced its strong financial performance for FY 2022, achieving net revenue of $1.44 billion, surpassing guidance of $1.3 billion. Despite an EBITDA loss of approximately $440 million, the company anticipates being EBITDA positive in the second half of 2023. The business experienced a 51% growth in same-state net revenue and reduced customer acquisition costs by 21%. BetMGM holds a 30% market share in iGaming and 13% in online sports betting, with presence in 25 jurisdictions across North America. The company expects net revenue between $1.8 and $2 billion for FY 2023, alongside a combined additional investment of $150 million from MGM and Entain.

Positive

• FY 2022 net revenue of $1.44 billion exceeded guidance of $1.3 billion.
• 51% growth in same-state net revenue from digital operations.
• Reduced customer acquisition costs by 21% year-over-year.
• BetMGM projected to generate net revenue between $1.8 billion and $2 billion in FY 2023.
• Expecting to be EBITDA positive in the second half of 2023.
• Combined additional investment of $150 million from MGM and Entain.

Negative

• EBITDA loss of approximately $440 million for FY 2022.

BetMGM expected to be EBITDA positive in the Second Half of 2023

JERSEY CITY, N.J., Jan. 26, 2023 /PRNewswire/ -- BetMGM, one of the leading sports betting and iGaming operators in North America, jointly owned by MGM Resorts International (NYSE: MGM) ("MGM Resorts") and Entain plc (LSE: ENT) ("Entain"), is today providing an update on performance and outlook for 2023.

• BetMGM finished FY 2022 with a strong financial performance
• Net revenue from operations of $1.44 billion, ahead of prior guidance of over $1.3 billion
• Same-state growth in net revenue from digital operations of 51%
• EBITDA loss of approximately $440 million, in line with prior guidance²
• Financial outperformance driven by:
• Higher gross gaming margins resulting from improved customer experience and other product improvements
• Same state CPAs reduced by 21% year-over-year due to data-focused marketing strategy and increased scale
• Improved approach to player bonusing delivered by our data science team
  
  
• BetMGM has established itself as a leading sports betting and iGaming operator in North America
• Top 3 operator in the U.S. for sports betting and iGaming
• Continued market leadership in iGaming with approximately 30% market share³
• Online sports betting market share of 13%, with 20% share in markets where BetMGM was live on day one³
• Our Q4 2022 online sports net revenue margin has doubled versus Q4 2021 as we continue to optimize our bonus environment
  
  
• Live in 25 jurisdictions with access to approximately 45% of the adult population in the United States as well as now operating in Ontario, Canada⁴
• Expanded online footprint in 2022 with launches in six new markets: New York, Louisiana, Illinois, Ontario, Kansas, and Maryland
• Opened four new retail sportsbooks: Nationals Park in Washington, DC, Casino del Mar in Puerto Rico, The Cosmopolitan in Las Vegas, and at State Farm Stadium, the first retail sportsbook at an NFL stadium and home of the 2023 Super Bowl
• Launched in Ohio on January 1, 2023, with online sports betting and two retail sportsbooks at MGM Northfield Park and at the Reds' Great American Ball Park
  
  
• Furthered our commitment to industry leadership in promoting player safety and responsible gaming
• Created the first industry-led online responsible gaming standards in collaboration with a coalition of other online gaming operators
• Increased funding for gaming research, joined the National Council on Problem Gambling and prioritized customer service across all facets of our business
• Implemented the award-winning responsible gaming program, GameSense, companywide
• Committed to continuously expanding our product tools to proactively monitor customers and curate messaging to ensure safe and responsible play
  
  
• Winner of several industry awards including: Casino Operator of the Year by EGR North America; Casino Operator of the Year at SBC Awards North America; Online Casino of the Year by the American Gambling Awards; and identified as one of the Best Workplaces in New York by Fortune
  
  
• BetMGM is well positioned to achieve net revenue from operations of between $1.8 and $2 billion in FY 2023 and be EBITDA positive in the second half of 2023
  
  
• Wholly supportive of BetMGM's stellar performance and with confidence in management's plan, MGM Resorts and Entain expect to invest a combined additional $150 million in FY 2023
• This brings the total combined investment to build the company in less than 5 years to approximately $1.25 billion

Conference Call:
BetMGM will host a conference call at 10:00 a.m. Eastern Time today, which will include an overview of its results, followed by a Q&A session. The call will be accessible via webcast or dial in – registration details below:

The live webcast will be accessible at: Webcast Registration.

For those wishing to ask a question, please register at: Dial-in Registration. Upon registration, dial-in details and a personalized PIN will be provided.

The webcast details and replay will also be accessible via

http://investors.mgmresorts.com/investors/events-and-presentations/

OR  https://entaingroup.com/investor-relations/results-centre/.

Management Commentary:
Adam Greenblatt, Chief Executive Officer of BetMGM, commented: "The talented team at BetMGM continues to execute our plan with purpose, passion, and discipline. 2022 was a year in which we delivered against many key strategic initiatives and achieved several company milestones, including exceeding our financial targets, launching a redesigned BetMGM mobile app and furthering our commitment to Responsible Gambling. With continued and unwavering support from our shareholders, we look to 2023 confident in achieving further key milestones, including $1.8 to $2 billion in net revenue from operations and being EBITDA positive in the second half of 2023."

Notes:

1. FY 2022 net revenue for BetMGM on a GAAP basis is expected to be approximately $1,403 million, which includes approximately $55 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. FY 2022 EBITDA is an unaudited estimate.
3. Market share for last three months ending October 2022 by GGR including only U.S. markets where BetMGM was active; internal estimates used where operator-specific results are unavailable.
4. BetMGM operates iGaming and Online Sports Betting in five markets and Sports Betting only in twenty markets.

Forward-looking statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve substantial risks and/or uncertainties, including those described in the MGM Resorts International public filings with the Securities and Exchange Commission. BetMGM has based forward-looking statements on management's current expectations, assumptions and projections about future events and trends. Examples of these statements include, but are not limited to, BetMGM's expectations regarding its financial outlook (including forecasted net revenues from operations, EBITDA, and amounts expected to be invested by MGM Resorts and Entain in 2023), projected market share position, and its expected growth in new and existing jurisdictions. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Included among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements are: 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, BetMGM 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. If BetMGM updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

Non-GAAP Financial Information
This press release includes net revenue from operations, which has 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 differently, 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 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 32 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 sports betting and online gaming in North America through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary LeoVegas AB offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe. 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.

About Entain plc
Entain plc (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, operating 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

COMPANY CONTACTS

BETMGM
ELISA RICHARDSON
Head of Public Relations & Communications
press@betmgm.com

MGM RESORTS
Investment Community
ANDREW CHAPMAN
Director of Investor Relations
achapman@mgmresorts.com

News Media
BRIAN AHERN
Executive Director, Media Relations
media@mgmresorts.com

ENTAIN
Investment Community
DAVID LLOYD-SEED
Chief Investor Relations & Communications Officer
investors@entaingroup.com

DAVINA HOBBS
Head of Investor Relations
investors@entaingroup.com

CALLUM SIMS
Investor Relations Manager
investors@entaingroup.com

News Media
LISA ATTENBOROUGH
Head of Media Relations
media@entaingroup.com

JODIE HITCH
Media Relations Manager
media@entaingroup.com

 

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SOURCE BetMGM

FAQ

What was BetMGM's net revenue for FY 2022?

BetMGM reported a net revenue of $1.44 billion for FY 2022.

When does BetMGM expect to be EBITDA positive?

BetMGM anticipates being EBITDA positive in the second half of 2023.

What is BetMGM's market share in iGaming and online sports betting?

BetMGM holds a 30% market share in iGaming and 13% in online sports betting.

How much is MGM and Entain investing in BetMGM for FY 2023?

MGM and Entain plan to invest an additional $150 million in BetMGM for FY 2023.

What is the growth rate in same-state net revenue for BetMGM?

BetMGM experienced a 51% growth in same-state net revenue from digital operations.