REG - Entain PLC - BetMGM Q1 2025 Update

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RNS Number : 4510G  Entain PLC  28 April 2025

28 April 2025

 

BETMGM 1Q 2025 BUSINESS UPDATE

 

Strong start to 2025 affirms strategic approach and confidence of positive
EBITDA in 2025

 

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 its 1Q 2025 performance.

 

·   BetMGM's strong momentum from 2H 2024 continued during 1Q 2025, driven
by its leading iGaming offering and strengthened sports product, and refined
approach to player management

·     1Q Net Revenue up +34% YoY with strong growth across both iGaming
(+27%) and Online Sports (+68%)

·      Positive 1Q EBITDA and underlying trends reaffirm confidence that
FY 2025 will be EBITDA positive(1)

 

Adam Greenblatt, Chief Executive Officer of BetMGM, commented:

"2025 is off to an encouraging start for BetMGM as we execute our revised
strategic plan. The momentum we built in the second half of 2024 continued
into the first quarter as we implement our powerful iGaming strategy, enabling
us to grow faster than the market and at scale. In Online Sports, we are
elevating our brand and delivering improved performance, even in the face of
unfavorable sports outcomes during key moments in the quarter. As we approach
May, we remain confident in achieving full year positive EBITDA in 2025,
supported by solid underlying activity trends and our successful delivery of
positive EBITDA in the first quarter."

 

1Q 2025 Key Financial Highlights

 1Q 2025 BetMGM Financial Summary(1,2,3)
                                         Three months ended

                                         March 31,
 $ millions, unless otherwise noted      2025        2024        YoY Change

 Net Revenue
 iGaming                                 $443        $348        +27%
 Online Sports                           $194        $116        +68%
 Handle                                  $4,088      $3,174      +29%
 GGR Hold %                              8.2%        8.7%        (50)bps
 NGR Hold %                              4.8%        3.6%        +110bps
 Retail / Other                          $20         $26         (22)%
 Total Net Revenue                       $657        $489        +34%

 Contribution                            $116        ($38)       +$153

 EBITDA                                  $22         ($132)      +$154

 Average Monthly Actives (thousands)(4)  1,067       1,009       +6%

 

 

 

 

 

Financial Highlights

·   1Q Net Revenue of $657 million, up +34% YoY, continuing acceleration
with strong underlying player engagement metrics

o iGaming Net Revenue up +27% YoY driven by leading iGaming offering

o Online Sports Net Revenue up +68% YoY demonstrating strengthened product
offering, expansion of NGR margin, and enhanced player engagement

(§) Handle up +29% YoY(5)

(§) NGR margin improvement of +110 bps YoY

o Average Monthly Actives up +6% YoY, reflecting significant growth in
iGaming players, partially offset by improved OSB approach to player
segmentation and management

·    1Q EBITDA of $22 million (up $154 million YoY), with iGaming
Contribution of $133 million and positive Contribution from Online Sports

(o )1Q EBITDA benefited from one-time accounting items offset by the impact
of customer friendly sports results

(·    )Continued stabilization of GGR market share in active markets with
iGaming (22%) and Online Sports (8%), further cementing BetMGM's podium
position in the market(6,7)

·      $150 million revolving credit facility remains undrawn

 

Operational highlights

·      Market leading iGaming offering

o 1Q Average Monthly Actives up +43% reflecting our leading iGaming offering
and focused marketing investment

o  Active Player Days up +39% YoY driven by unique and exclusive content
across both real-money and free-to-play engagement games(8)

o  Improved cross-sell engagement with +13 ppt YoY increase in percent of
Online Sports players playing iGaming(9)

 

·    Strengthened Online Sports product coupled with focus on premium
mass players and improved engagement

o  Broader market range, improved pricing and enhanced parlay offering
contributed to strong gains in player economics and activity metrics

(§) Growth of +4.8 ppt in parlay bet mix (inclusive of SGPs)(10)

(§) Bets per Active increased +28% YoY(11)

o  Refined approach to player retention with improved segmentation and
promotional strategy

(§) Handle per Active up +37% YoY(12)

(§) Active Player Days up +20% YoY

 

Outlook

·    BetMGM's year-to-date performance provides increased confidence in
exceeding guidance, however we remain mindful it is still relatively early in
the year. As such, we reaffirm our expectations for FY 2025 to be EBITDA
positive, and Net Revenue guidance of $2.4 billion to $2.5 billion

o  Reiterated expectations of Online Sports to be Contribution positive for
FY 2025

·      Reaffirmed confidence in BetMGM's pathway to $500 million EBITDA
in the coming years

 

1Q 2025 Conference Call and Q&A

·   An audio webcast call will be held today, Monday April 28, 2025 at
2:00pm UK (9:00am EST), with participants able to join via webcast or by
conference call.

·      Live webcast link: BetMGM Q1 2025 Financial Update
(https://app.webinar.net/ZLvRyGPQpbj)

·    There will be a 30 minute Q&A session, to participate please use
dial ins below and register via the following link: Register for Q&A
(https://registrations.events/direct/Q4I727490)

US Toll free         +  1 888 500 3691

US                          +  1 646 307 1951

UK Toll free       +44 800 358 0970

UK                          +44 20 3433 3846

Global Dial-In Numbers
(https://registrations.events/directory/international/itfs.html)   (Access
Code: 72749)

 Contacts:

 BetMGM
 Witek Wacinski - SVP Strategy & Development
                          witek.wacinski
 (mailto:witek.wacinski@betmgm.com) @betmgm.com
 (mailto:witek.wacinski@betmgm.com)

 Entain plc
 Investor Relations

                investors@entaingroup.com
 (mailto:investors@entaingroup.com)

 Media
                    media@entaingroup.com

 MGM Resorts International
 Investment Community

 Sarah Rogers - Senior Vice President, Corporate
 Finance
 srogers@mgmresorts.com (mailto:srogers@mgmresorts.com)

 Howard Wang - Vice President, Investor
 Relations
 hwang (mailto:hwang@mgmresorts.com) @mgmresorts.com
 (mailto:hwang@mgmresorts.com)

 News Media

 Brian Ahern - Executive Director,
 Communications
 media@mgmresorts.com (mailto:media@mgmresorts.com)

 

Notes:

1: Net Revenue, EBITDA, and Contribution are based on how management analyzes
the performance of the business, which are not prepared in accordance with
GAAP. Refer to "Non-GAAP Financial Information" section below for additional
detail.

2: BetMGM's independent registered public accounting firm has not audited,
reviewed or performed any procedures with respect to these 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.

3: Totals may not sum due to rounding.

4: Average Monthly Actives are equal to the average of unique monthly actives
over the period, regardless of product played; monthly actives include players
that place 1+ bets within the month.

5: Handle reflects the total Online Sports handle (cash + bonus bets) taken in
the quarter.

6: BetMGM operates iGaming and Online Sports Betting in five markets and
Sports Betting only (combined online and retail) in 24 markets.

7: Gross Gaming Revenue (GGR) market share consists of last three months
ending December, January, or February 2025 as latest reported for U.S. sports
betting markets where BetMGM was active (online and retail), last three months
ending February 2025 for U.S. iGaming markets where BetMGM was active, and
last three months ending February 2025 for the Ontario market. Internal
estimates used where operator-specific results are unavailable.

8: Active Player Days are equal to the sum of the total monthly player days
over the period divided by the sum of total monthly actives over the same
period.

9: Cross-sell rate is the percent of unique Online Sports actives in
multi-product markets that placed 1+ iGaming bets over the period.

10: Parlay bet mix reflects percentage of overall Online Sports bets that were
SGPs or Parlays over the period, compared to the same percentage in the same
period last year.

11: Bets per Active are equal to total bets over the period divided by the sum
of the total monthly actives over the same period.

12: Handle per Active is equal to total handle over the period divided by the
sum of the total monthly actives over the same period.

 

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 and EBITDA), projected market share position, its
expected growth in new and existing jurisdictions, product capabilities, and
achievement of key milestones. 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

In this press release we provide certain financial measures, including Net
Revenue, EBITDA, and Contribution from operations, which have not been
prepared in accordance with GAAP. BetMGM believes these measures, which it
uses for its own analysis of operations, are useful to supplement the results
presented in accordance with GAAP. These non-GAAP financial measures, which
may not be comparable to other similarly titled measures presented by other
companies, should not be considered a substitute for, or superior to, the
financial information prepared in accordance with GAAP.  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. We define EBITDA as net income (loss) before the impact of interest
income or expense (net), income tax provision or benefit, and depreciation and
amortization.  We define Contribution as Net Revenue, less cost of revenue
(exclusive of depreciation and amortization) and marketing acquisition spend.

 

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 www.betmgminc.co
(http://www.betmgminc.co/) m

 

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, STS and SuperSport; Gaming brands include
Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and
PartyCasino. The Group operates the TAB NZ brand as part of a long-term
strategic partnership with TAB New Zealand. 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 and is the only
global operator to exclusively operate in domestically regulated or regulating
markets operating in over 30 territories.

Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AAA rated by
MSCI. For more information see the Group's website: www.entaingroup.com
(http://www.entaingroup.com)

LEI: 213800GNI3K45LQR8L28

 

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global gaming and
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
sports betting and online gaming in North America through market-leading
brands, including BetMGM and partypoker, and the Company's subsidiary, LV
Lion Holding Limited, 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 an integrated resort
development in Japan. Through its Focused on What Matters 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
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fc212.net%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D4392503-1%26h%3D2188558492%26u%3Dhttps%253A%252F%252Fc212.net%252Fc%252Flink%252F%253Ft%253D0%2526l%253Den%2526o%253D4382053-1%2526h%253D2319270735%2526u%253Dhttp%25253A%25252F%25252Fwww.mgmresorts.com%25252F%2526a%253Dwww.mgmresorts.com%26a%3Dwww.mgmresorts.com&data=05%7C02%7CNitish.Basandra%40betmgm.com%7C85f6411aeda44514326f08dd7d04bd44%7C60c43c0a64ac4050bf3e31e1cdfffdeb%7C0%7C0%7C638804181977260989%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=Fh90J9xiJI5CXCSEy%2FLuyznVn6HCNQd9uHuKwOfb7%2Bk%3D&reserved=0)
. Please also connect with us @MGMResortsIntl on X as well as Facebook and
Instagram.

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