TIDMENT
RNS Number : 2825H
Entain PLC
26 July 2023
-
BETMGM FIRST HALF 2023 UPDATE
NET REVENUE FROM OPERATIONS OF $944 MILLION IN FIRST HALF OF
2023(1)
POSITIVE EBITDA FOR THE FULL SECOND QUARTER OF 2023(2)
JERSEY CITY - July 26, 2023 - BetMGM, one of the leading sports
betting and iGaming operators in North America, jointly owned by
Entain plc (LSE: ENT) ("Entain") and MGM Resorts International
(NYSE: MGM) ("MGM Resorts"), is today providing an update on First
Half of 2023 ("1H 2023") performance and outlook for full-year
2023.
Adam Greenblatt, Chief Executive Officer of BetMGM,
commented:
"I am pleased with the significant progress we have made during
the first half of 2023 as we continue our strong growth and remain
on our path to profitability. Our financial guidance for the year
remains on track - we expect to deliver $1.8 to $2.0 billion in
full year revenue, as well as to be EBITDA positive in the second
half of 2023. In fact, we have already achieved positive EBITDA for
the full second quarter of this year. Our focus remains on building
a sustainable, scalable and returns focused business with leading
products that our players enjoy responsibly. We look forward to the
remainder of the year, buoyed by ongoing product improvements,
tremendous support from our shareholders providing access to new
assets and partnerships, and - above all - our extraordinary team
at BetMGM."
-- BetMGM finished 1H 2023 with strong financial performance
o Net revenue from operations of $944 million, on track to
deliver at the upper end of previous guidance range for FY 2023
revenue of $1.8 to $2.0 billion
-- 1H same-state growth of 25% in net revenue from digital
operations
o Reached the key milestone of positive EBITDA for 2Q 2023
o Improved same state CPAs by 8% in 1H 2023 year on year
o Bonus optimization and player management program continuing to
have significantly positive impact, delivering enhanced GGR to NGR
conversion:
-- Sports NGR margin increased by 300 bps in 1H 2023 year on
year
-- Digital sports 1H revenue per player up by 65% for players
acquired in 2021 or earlier
o Each of the annual cohorts of digital sportsbooks launched
from 2019 through 2022 delivered positive Contribution Profit in
2Q(3)
-- Remain on track for previously stated guidance of EBITDA
positive in the second half of 2023 ("2H 2023")
o Includes investment in upcoming launches in Kentucky and North
Carolina that were not originally planned during 2023
o Expectation that BetMGM will become self-sustaining in 2H
2023, with no additional equity investment expected from Entain or
MGM Resorts after the $150 million previously committed for
2023
-- Established as a leading sports betting and iGaming operator in North America
o Continued geographic footprint expansion in 1H 2023, with new
digital sports betting launches in Ohio, Massachusetts, and Puerto
Rico
o Live in 26 jurisdictions, including Ontario, with access to
approximately 48% of the adult population in the United
States(4)
o Market share across iGaming and sports betting of 18%(5)
-- Continued market leadership in iGaming with approximately 27%
market share(6)
-- Online sports betting market share of 11%, with 13% share in
markets where BetMGM was live on day one(6)
-- Entain and MGM Resorts contributed new technology, resources,
and relationships to accelerate both BetMGM's product evolution and
its access to players
o Entain's acquisition of pricing and risk specialist Angstrom,
announced on July 17(th) , will enhance BetMGM's sports betting
offering, particularly in the fast-growing markets of parlay and
in-play wagering, and provide players with a greatly improved
experience
o In connection with MGM Resorts' exclusive partnership with
Marriott, announced on July 17(th) , BetMGM entered into a loyalty
marketing agreement with Marriott whereby BetMGM will offer
customers extensive opportunities to earn Marriott Bonvoy points
while playing with BetMGM, create exclusive games and experiences,
and allow customers to exchange BetMGM Rewards points into Marriott
Bonvoy points
o Various platform and product enhancements delivered to provide
a more exciting and seamless experience. We're on track with the
rollout of Single Account Single Wallet
-- Ongoing commitment to player safety, prioritizing responsible gambling across our business
o Five-year extension to GameSense partnership, announced on
March 1(st) , continues BetMGM's prominence of responsible gambling
messages in its digital and out-of-home marketing campaigns, as
well as in its mobile app and retail sportsbooks
-- Through its GameSense partnership, BetMGM provides customers
with information about how to bet responsibly, setting limits,
dispelling myths, and finding support and assistance
o BetMGM awarded one of the Responsible Gambling Council's top
accreditations for integration of responsible gambling and player
protection into platforms and operations
-- Award recognition including
o Casino Operator of the Year by EGR North America (second year
in a row)
o Casino Operator of the Year at SBC Awards North America (third
year in a row)
o 2023-2024 Great Place to Work Certification(TM)
Notes:
1: 1H 2023 net revenue for BetMGM on a GAAP basis is expected to
be approximately $923 million, including approximately $32 million
related to Nevada MGM Resorts 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: 1H 2023 Revenue and EBITDA figures are unaudited.
3. Contribution Profit for a particular state reflects Net
Gaming Revenue minus direct costs (excluding depreciation and
amortization and people costs) considered under GAAP presentation
of Gross Profit plus marketing acquisition spend.
4: BetMGM operates iGaming and Sports Betting in five markets
and Sports Betting in twenty-one markets.
5: Market share for last three months ending April 2023 by GGR
including iGaming, retail and online sports betting, and only U.S.
markets where BetMGM was active excluding New York; internal
estimates used where operator-specific results are unavailable.
6: Market share for last three months ending April 2023 by GGR,
including only U.S. markets where BetMGM was active and excluding
New York in online sports; internal estimates used where
operator-specific results are unavailable.
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 Entain and MGM Resorts 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 Entain Plc (LSE: ENT) and MGM Resorts
International (NYSE: MGM), BetMGM has exclusive access to all of
MGM's U.S. land-based and online sports betting, major tournament
poker, and online gaming businesses. Utilizing Entain's
US-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 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
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is an S&P 500(R)
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, 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(R) Magazine's World's Most Admired
Companies(R). For more information, please visit us at
www.mgmresorts.com . Please also connect with us @MGMResortsIntl on
Twitter as well as Facebook and Instagram .
COMPANY CONTACTS
BETMGM
Investment Community witek.wacinski@betmgm.com
WITEK WACINSKI
VP Strategy & Development
News Media press@betmgm.com
ENTAIN
Investment Community 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
Investor Relations Manager
News Media media@entaingroup.com
LISA ATTENBOROUGH
Head of Media Relations
JODIE HITCH
Media Relations Manager
MGM RESORTS
Investment Community achapman@mgmresorts.com
ANDREW CHAPMAN
Director of Investor Relations
News Media media@mgmresorts.com
BRIAN AHERN
Executive Director, Media Relations
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UPDNKABKKBKDCOB
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