TIDMENT
RNS Number : 9739Y
Entain PLC
19 January 2022
19 January 2022
Entain and MGM Resorts International
BetMGM business update
BetMGM expects to deliver net revenue from operations of over
$1.3bn in 2022 and reach positive EBITDA in 2023
BetMGM LLC ("BetMGM"), one of the leading sports betting and
iGaming operators across the U.S., jointly owned by Entain plc
(LSE: ENT) ("Entain") and MGM Resorts International (NYSE: MGM)
("MGM Resorts"), is today providing an update on performance and
outlook for 2022.
-- BetMGM is achieving market share in line with its long-term
target of 20% - 25% in U.S. sports betting and iGaming
o Number 2 operator for sports betting and iGaming across the
markets in which it operates with a 24% market share for the three
months to November 2021
o Remains market leader in iGaming with 30% market share for the
three months to November 2021 in the markets in which it
operates
-- Live in 19 jurisdictions - 4 iGaming, 19 sports betting
o Expect to reach approximately 40% of the U.S. adult population
with 2 further jurisdiction launches as well as launch in Canada
and Puerto Rico in the coming months
-- Strong financial performance in FY 2021:
o Net revenue from operations expected to be approximately
$850m(1) , ahead of management expectations and up nearly five
times from prior year
o Same state growth in net revenue from operations of 140% from
prior year
o FY 2021 EBITDA loss expected to be in the range of $420m -
$440m, in line with expectations
o Cost per acquisition was in line with management's forecast,
which reaffirms the expectation of achieving a long-term
acquisition cost of $250
o Player values in line with expectations supporting long term
total addressable market opportunity in North America of around
$32bn
-- FY 2022 net revenue from operations expected to be over $1.3bn
-- Continued growth will be supported by investment in
additional markets and product deployments:
o Expecting to launch online sportsbooks in Illinois and
Louisiana in the first quarter as well as retail sportsbooks in
Puerto Rico and both online sportsbook and iGaming in Ontario later
this year
o Expanding our first-to-market Bingo product and the BetMGM
Racing app into additional states while continuing to enhance our
products in existing markets
o Continuing to employ our returns-driven marketing strategy
while further incorporating the MGM Resorts loyalty program into
all aspects of our offering
o Maintain our market-leading customer service while
prioritizing responsible gaming across all facets of our
business
-- BetMGM anticipates reaching positive EBITDA in 2023, based on
its current assumption of future live markets
o We have achieved positive contribution in several states, some
within one year of launch, driven by our prudent, data-driven
marketing strategy and by leveraging our omni-channel offering
-- Wholly supportive of BetMGM's continuing success, strong
performance and market leadership, the investment by Entain and MGM
Resorts is expected to be approximately $450m in 2022
o This would bring the combined total investment from Entain and
MGM Resorts to approximately $1.1bn since launch in 2018
Conference Call:
BetMGM will host a conference call at 3.00pm UK time today
(10:00am ET) today, which will include an overview of its results,
followed by a brief question and answer session. The call will be
accessible via the Internet through:
https://www.webcaster4.com/Webcast/Page/2832/44324 or by
dialling:
U.K.: +44 (0) 20 3147 4901
U.S. (Toll Free): +1 (877) 871-3172
International: +1 (412) 902-6603
Conference call access code: 3122358
The live webcast and replay will also be accessible at
https://entaingroup.com/investor-relations/results-centre/
BetMGM 2022 Investor Day:
BetMGM will host an investor day for analysts and investors
during May to provide further updates on financial performance,
operational plans and outlook. Details of the event, including
format and registration, will be made available via press release
in due course.
Adam Greenblatt, CEO of BetMGM, commented:
"The highly talented team at BetMGM is executing our plan with
purpose, passion and discipline, and our results speak for
themselves. After only 3 years into our journey, we have cemented
the credibility of BetMGM's leadership ambition in sports betting
and iGaming in the U.S. 2022 is a critical year, where the leading
national operators will reach critical mass, paving the way for the
next phase of the sector's financial evolution. With the support of
our shareholders, our technology and data platform, brand and
omni-channel strategy, we look to the future with confidence."
Jette Nygaard-Andersen, CEO of Entain commented:
" BetMGM is built on Entain's best in class technology and
capabilities alongside MGM Resorts iconic brand and assets. Its
fantastic success so far demonstrates that BetMGM has really
captured the excitement of customers across the states where it
operates. BetMGM continues to outpace the market as a result of its
unique assets and go to market approach, broad and highly engaging
range of in-house products and digital marketing capabilities.
Given the long term opportunity and shareholder value potential in
winning in this market, we are very happy to support BetMGM in this
investment phase of its growth journey and we are absolutely
committed to providing BetMGM with what it takes to win."
Bill Hornbuckle, CEO & President of MGM Resorts
commented:
"BetMGM has made significant progress in gaining a strong
foothold in the rapidly growing U.S. sports betting and iGaming
market, solidifying its position as the number two operator
nationwide in 2021. These achievements are underpinned by the
structural advantages offered through MGM Resorts and Entain as
well as a best-in-class team at BetMGM led by Adam. As we look to
2022, we are beyond excited about further integrating BetMGM with
our MGM loyalty program and land-based operations to elevate the
BetMGM player experience. We are more confident than ever about
BetMGM's future prospects and remain committed to its continued
success."
Notes:
1: 2021 net revenue for BetMGM on a GAAP basis is expected to be
approximately $813 million, which includes approximately $52
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
Contacts:
BetMGM
Elisa Richardson press@betmgm.com
Head of Public Relations & Communications
----------------------------------------------------------------
Entain plc
----------------------------------------------------------------
Investor Relations
David Lloyd-Seed investors@entaingroup.com
Group Director of Investor Relations & Corporate Communications
Davina Hobb s
Head of Investor Relations
News Media
Tessa Curtis media@entaingroup.com
Head of Group PR & Media Relations
MGM Resorts International
----------------------------------------------------------------
Investment Community
Catherine Park cpark@mgmresorts.com
Executive Director, Investor Relations
News Media
Brian Ahern media@mgmresorts.com
Director of Media Relations
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. 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 projected 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 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 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 bwin,
Bet.pt, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and
Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala,
Gioco Digitale, 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's joint-venture with MGM Resorts International,
BetMGM, is a leader in sports-betting and iGaming in the US. Entain
provides the technology which powers BetMGM and exclusive games and
products, specially developed at its in-house gaming studios. The
Group is tax resident in the UK with licenses in a total of 27
regulated markets. 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 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 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(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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDBKCBBDBKDPDD
(END) Dow Jones Newswires
January 19, 2022 08:30 ET (13:30 GMT)
Gvc (LSE:GVC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gvc (LSE:GVC)
Historical Stock Chart
From Apr 2023 to Apr 2024
