REG - Entain PLC - BetMGM Q3 2025 Update and Raised FY25 Guidance

EntainAnnouncement

Tue 12:00

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RNS Number : 3049D  Entain PLC  14 October 2025

14 October 2025

 

BETMGM Q3 2025 BUSINESS UPDATE AND RAISED FY25 GUIDANCE

 

Q3 ahead of expectations with strong performance momentum continuing during H2
2025

 

BetMGM LLC ("BetMGM"), a leading sports betting and iGaming operator 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 Q3 2025 performance.

 

·      Q3 performance ahead of expectations, with strong year-to-date
momentum continuing across both Online Sports and iGaming

o  Net Revenue of $667 million, up +23% YoY

o  iGaming Net Revenue up +21% YoY and Online Sports Net Revenue up +36% YoY

o  EBITDA of $41 million, up +$57 million YoY

·      Ongoing successful execution of BetMGM's refined player
engagement strategy supported by further enhanced product and user experiences
delivered growth in player activity and retention

·      Increased FY25 guidance to Net Revenue of at least $2.75 billion
and EBITDA of approximately $200 million

·      BetMGM expects to distribute at least $200 million to parents
before end of 2025

 

Adam Greenblatt, Chief Executive Officer of BetMGM, commented:

"BetMGM's momentum from H1 continued into Q3, underpinned by the ongoing
execution of our strategic plan. The execution in operations we have described
this year - improved marketing efficiency, player management, brand
positioning, and product and platform improvements - all contributed to our
strong revenue growth and material cash flow increase from both sides of the
business. Strong underlying metrics and margin outperformance during July and
August support our confidence in raising guidance for full year 2025.
Furthermore, we have reached yet another inflection point in our journey,
returning operating cash flow back to Entain and MGM Resorts. My previous
statements that BetMGM is healthier than it has ever been still ring loudly,
and our stronger than expected performance through Q3 positions us well for
the rest of the year and into 2026."

 

Q3 2025 Key Financial Highlights

 Q3 2025 BetMGM Financial Summary(1,2,3)
                                         Three months ended            Nine months ended

September 30,
September 30,
 $ millions, unless otherwise noted      2025     2024     YoY Change  2025       YoY Change
 Net Revenue
 iGaming                                 $454     $376     +21%        $1,345     +26%
 Online Sports                           $202     $148     +36%        $624       +52%
 Handle(4)                               $3,159   $2,800   +13%        $10,674    +22%
 GGR Hold %                              10.1%    9.9%     +20bps      9.3%       -- bps
 NGR Hold %                              6.4%     5.3%     +110bps     5.8%       +110bps
 Retail / Other                          $11      $20      (47%)       $46        (25%)
 Total Net Revenue                       $667     $544     +23%        $2,016     +31%

 Contribution                            $132     $80      +$52        $440       +$293

 EBITDA                                  $41      ($16)    +$57        $150       +$289

 Capital Expenditures                    $3       $2       +$2         $29        +$15

 Average Monthly Actives (thousands)(5)  902      854      +6%         957        +6%

Financial Highlights

·      Q3 Net Revenue of $667 million, up +23% YoY, with continued
strong underlying momentum

o  Year-to-date Net Revenue of $2.016 billion

o  iGaming Net Revenue up +21% YoY underpinned by our leading iGaming
offering

o  Online Sports Net Revenue up +36% YoY reflecting our strengthened product
offering and refined player engagement; favorable sports results in July and
August offset by player-friendly outcomes in September

o  Average Monthly Actives up +6% YoY in line with expectations, reflecting
our refined player targeting and management capabilities

·      Q3 EBITDA of $41 million (up +$57 million YoY), with both iGaming
and Online Sports delivering positive Contribution

o  Year-to-date EBITDA of $150 million

·      Secure podium position with 15% GGR market share in active
markets, including iGaming (21%) and Online Sports (8%)(6,7)

 

Operational Highlights

·      Ongoing product enhancements saw BetMGM offering players its
fastest, most user-friendly and most complete product to date

·      Successful Make it Legendary campaign launch ahead of football
season, featuring award-winning actor Jon Hamm and other brand ambassadors,
refining BetMGM's brand identity and highlighting its elevated entertainment
experiences including exceptional omnichannel hospitality

 

·      Market-leading iGaming offering

o  Leading iGaming offering and enhanced player management, seeing continued
strong growth in player acquisition, retention and activity

(§) Q3 Average Monthly Actives +21%(5)

o  Best-in-class and exclusive content continues to provide players with
exciting and engaging experiences

(§) Exclusive launches include omnichannel titles in the Wizard of Oz
franchise and Rakin' Bacon, as well as branded casino games in partnership
with The Price Is Right franchise and NFL teams ahead of season start

(§) Further targeting and showcasing of promotions to cross-sell Online
Sports and iGaming players in our multi-product states during NFL season to
date

 

·      Upgraded Online Sports product supported by refined player
management and disciplined acquisition approach

o  Improved product and app experience including upgraded visual design,
contextual stats and decision support, and enhanced rewards dashboard, as well
as exciting new features including live SGPs and in-game SGP cashout
capabilities

o  Refined approach to player management and engagement delivering further
improvements to retention, economics and activity metrics across both new and
existing cohorts

(§) Q3 Handle per Active +23% and NGR per active +49% YoY(8)

(§) Q3 NGR margin improvement of +110 bps YoY

 

Outlook

·      BetMGM's stronger than expected year-to-date performance provides
increased confidence for the balance of 2025

o  FY25 guidance increased to Net Revenue of at least $2.75 billion and
EBITDA of approximately $200 million

o  Reiterated expectation of achieving more than $500M of Contribution, with
positive Contribution from Online Sports

·      BetMGM is now positioned to distribute excess cash to parents,
Entain and MGM Resorts, while maintaining a minimum unrestricted cash
threshold of $100 million going forward

o  Expect a total of at least $200 million to be returned for FY25

o  BetMGM expects to end the year with approximately $100 million of
unrestricted cash after distributing excess cash to parents

o  EBITDA minus CapEx is a reasonable proxy for distributable cash to parents
in 2026 and beyond

o  Ample liquidity with more than $250 million to operate the business,
consisting of $100 million of unrestricted minimum cash and a $150 million
revolving credit facility (which currently remains undrawn)

o  Distributions of cash to parents will be on a quarterly cadence going
forward

 

Q3 2025 Conference Call and Q&A

·      An audio webcast call will be held today, Tuesday, October 14,
2025 at 2:00pm UK (9:00am EST), with participants able to join via webcast or
by conference call

·      Live audio webcast registration link: BetMGM Q3 2025 webcast
(https://registrations.events/direct/Q4I700354)

·      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/Q4I700354)

US Toll free         + 1 888 500 3691

US                          + 1 646 307 1951

UK Toll free       +44 800 358 0970

UK                          +44 20 3433 3846

International dial-in numbers
(https://registrations.events/directory/international/itfs.html)

Access Code: 70035

 Contacts:

 BetMGM
 Nitish Basandra - Director, Corporate Development & IR
            nitish.basandra@betmgm.com
 (mailto:nitish.basandra@betmgm.com)

 Jennifer Arapoff - Director, Public Relations
                               jennifer.arapoff@betmgm.com
 (mailto:jennifer.arapoff@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: Handle reflects the total Online Sports handle (cash + bonus bets) taken in
the period.

5: 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.

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 July or August 2025 as latest reported for U.S. sports betting markets
where BetMGM was active (online and retail), last three months ending August
2025 for U.S. iGaming markets where BetMGM was active, and last three months
ending August 2025 for the Ontario market. Internal estimates used where
operator-specific results are unavailable.

8: Handle and NGR per Active are equal to each respective metric over the
period divided by the sum of the total monthly actives during the same period.

 

Supplementary financial disclosures

BetMGM has updated its financial disclosure practices, aiming to provide
investors with more comprehensive and transparent information regarding its
financial position and operations. These enhanced disclosures will include a
more granular breakdown across different segments to provide greater insight
into performance drivers.

 

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 expected distributions to Entain and MGM
Resorts), 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.com) 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 destinations 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 and Brazil. 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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