REG - Entain PLC - BETMGM FY 2024 Update

EntainAnnouncement

04/02/2025 12:00

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RNS Number : 8713V  Entain PLC  04 February 2025

4 February 2025

 

BETMGM FY 2024 UPDATE

 

2024 strategic refinement and delivery underpins 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 Fiscal Year 2024 ("FY 2024") performance.

 * BetMGM's leading iGaming offering, strengthened sports product and enhanced
player engagement delivered accelerating growth and performance metrics
through 2024

 * Inflection in Online Sports strategy drives expectation of positive
Contribution(1) in FY 2025

 * FY 2025 expected to be EBITDA(1) positive with Net Revenue(1) of $2.4 billion
to $2.5 billion

 * Reiterate confidence in our pathway to $500 million EBITDA supported by scale,
revenue growth and operational leverage

 

Adam Greenblatt, Chief Executive Officer of BetMGM, commented:

"2024 was a year of investment and rebuilding of momentum for BetMGM. Our
successful strategic refinement saw BetMGM exit the year with encouraging run
rates across our key metrics and Q4 EBITDA trend towards breakeven on a
normalized basis(2). Our leading iGaming business continues to grow strongly
and deliver attractive returns. We also have an exciting opportunity in Online
Sports, having made meaningful progress in 2024. Our improved product,
accelerating growth and enhanced efficiency drive our expectation of Online
Sports being Contribution positive for FY 2025. With BetMGM's renewed
acceleration across both iGaming and Online Sports we expect to achieve
positive EBITDA in 2025, and our scaled podium position in the world's largest
gaming market underpins our confidence in our pathway to $500 million EBITDA
in the coming years."

 

Key Financial Highlights for Half Year and Full Year 2024

 2024 BetMGM Financial Summary(1,2,3,4)
 $ millions except percentages and average monthly actives  FY       YoY %            2H 2024  YoY %            1H      YoY %        FY

2023
                                                            2024     Change                    Change           2024    Change
 Net Revenue(5)
           iGaming                                          $1,479   +13%             $784     +15%             $695    +10%         $1,313

                                                                     +15% adj.                 +19% adj.
 Online Sports                                              554      +4%              292      +2%              262     +5%          535

                                                                     +17% adj.                 +29% adj.
 Handle                                                     $13,075  +20%             $7,161   +33%             $5,914  +8%          $10,860
 GGR Hold %                                                 8.6%     (90)bps          8.3%     (110)bps         9.0%    (80)bps      9.6%
 Retail(3) / Other                                          $70      (40)%            $27      (50)%            $42     (32)%        $117

                                                                     (32)% adj.                (32)% adj.
         Total                                              $2,102   +7%              $1,104   +8%              $999    +6%          $1,964

                                                                     +13% adj.                 +19% adj.

 EBITDA                                                     ($244)                    ($121)                    ($123)               ($62)

 Average Monthly Actives (thousands)(6)                     946      +14%             966      +17%             926     +12%         827

2024 Financial Highlights

 * 2024 Net Revenue of $2.1 billion, grew +7% YoY, with growth and player
engagement metrics accelerating through the year

o  Record iGaming Net Revenue of $1.5 billion, up +13% YoY

o  Online Sports Net Revenue up +4% with strengthened product and enhanced
engagement

o  FY 2024 adjusted(2) Net Revenue was up +13% YoY and Online Sports +17% YoY

o  Average Monthly Actives up 14% YoY reflecting strategic investment in
player acquisition

 * 2H saw continued momentum acceleration with adjusted Net Revenue up +19%,
compared to 6% growth in 1H

 * 2024 EBITDA of ($244) million, consistent with 2024 as a year of investment
and includes approximately $50 million negative impact from December's highly
customer favorable sports results

o  iGaming achieved significant Contribution of $424 million in FY 2024

o On a normalized basis, 4Q EBITDA trended towards breakeven demonstrating
marketing optimization and growing operational leverage

 * Market share stabilization at 14% GGR share in active markets(7) with iGaming
(22%) and Online Sports (8%), and 15% NGR share, cementing BetMGM's podium
position in the market(8)

o  Launched sportsbook in North Carolina and district wide in Washington,
D.C. in 2024

 * $150 million revolving credit facility secured and currently undrawn; no
further capital from parent companies expected

 

Delivering on Strategic Priorities

 * Market leading iGaming offering

o  Record Average Monthly Actives (4Q +55% YoY) reflect our leading iGaming
content supported by focused marketing investment

o  Active Player Days(9) increased with players enjoying the extensive
library of engaging real-money games, and unique free-to-play games

o  Exclusive game releases, including omnichannel titles representing 7 of
top 10 highest grossing slot games played(10)

o  Largest regulated U.S. online jackpot ever paid; $6.5 million in New
Jersey

 * Strengthened Online Sports product with enhanced player engagement approach

o  Greater market availability with richer pricing and unique features
improving parlay betting and engagement

¤ +41% increase in MLB Same Game Parlay ("SGP") bets per active(11)

¤ +2.2ppt growth in NFL SGP bet mix(12)

o  Enhanced player experience with features including quick bet, linear bet
slip, and live bet tracking, driving improved engagement and retention

¤ +11.5ppt YoY improvement in cross-sell of online sports players to
iGaming(13)

o  Optimized promotional strategy with enhanced segmentation and predictive
modeling

 * Unlocking unique omnichannel opportunities

o  First sports betting app to offer bettors in Nevada a seamless,
nationwide, digital wallet, allowing players to continue their BetMGM
experience when travelling to other regulated states

¤ Access to MGM Resort's 37,000 rooms provides an attractive acquisition
channel with unique omnichannel advantages

¤ Nevada-acquired First Time Depositors ("FTDs") increased 61% versus prior
year football season, and the percentage of those continuing to play after
their visit doubled(14)

o  Enriched engagement with omnichannel game titles and exclusive live events
for BetMGM players

o  Integration of BetMGM Rewards with MGM Resorts loyalty platform including
Marriott Bonvoy

 * Ongoing commitment to player safety with responsible gambling prioritized
across our business

o  Promoted new industry best practices as a founding member of the
Responsible Online Gaming Association (ROGA)

o  In partnership with MGM Resorts, expanded responsible gaming marketing to
nine NFL stadiums

o Launched BetMGM's first responsible gambling commercial featuring
ambassador Connor McDavid

 

Outlook

 * Acceleration achieved during 2024 with encouraging exit rate momentum carrying
into 2025

 * BetMGM expects FY 2025 to be EBITDA positive, an increase of approximately
$250 million YoY, with Net Revenue guidance of $2.4 billion to $2.5 billion

* 2025 iGaming Contribution is expected to exceed 2024 and Online Sports to be
Contribution positive for the full year 2025

 * Established and scaled podium position in a large and growing total
addressable market, coupled with increasing operating leverage, reaffirms our
confidence in BetMGM's pathway to $500 million EBITDA in the coming years

 

 

FY 2024 Conference Call & Audio Webcast

 * An analyst call will be held today, Tuesday, February 4, 2025 at 9:00am EST.

 * Participants may join via webcast or by conference call; dial in approximately
10 minutes before the start of the call.

 * Live webcast link:
BetMGM FY 2024 Results (https://app.webinar.net/5gmMdPWVaQR)

 * To participate in the Q&A, please use dial ins below and register via the
following link:
Register for Q&A (https://registrations.events/direct/Q4I406097)

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://www.netroadshow.com/events/global-numbers?confId=71602)

Access Code:    40609

 * A replay and transcript will be available on our website:
Results Centre - Entain Group
(https://www.entaingroup.com/investor-relations/results-centre)

 

 Contacts:

 BetMGM
 Witek Wacinski Ð 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 Ð Senior Vice President, Corporate
 Finance
 srogers@mgmresorts.com (mailto:srogers@mgmresorts.com)

 Howard Wang Ð 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: Adjusted Net Revenue growth normalizes for Q4 2023 BetMGM rewards points
adjustments across both Online Sports and iGaming, and December 2024
theoretical margin in sports; EBITDA adjustments include the associated flow
through from the Net Revenue related adjustments plus additional cost
adjustments related to prior year operations.

3: BetMGM has not completed its financial closing procedures for the year
ended December 31, 2024 and actual results can differ materially from these
estimates. In addition, BetMGM's independent registered public accounting
firm has not audited, reviewed or performed any procedures with respect to
these preliminary 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.

4: Totals may not sum due to rounding.

5: 2024 Revenue for BetMGM on a GAAP basis is expected to be approximately
$2,061 million, including approximately $52 million primarily 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. Refer to "Non-GAAP Financial Information" section below for
additional detail.

6: 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.

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

8: Consolidated Gross Gaming Revenue (GGR) market share consists of last three
months ending October, November, or December 2024 as latest reported for U.S.
sports betting markets where BetMGM was active (online and retail), last three
months ending December 2024 for U.S. iGaming markets where BetMGM was active,
and last three months ending December 2024 for the Ontario market. Internal
estimates used where operator-specific results are unavailable. Estimated
total North American Online Sports and iGaming Net Gaming Revenue (NGR) market
share consists of NGR disclosed by public operators as of 3Q24.

9. Active player days are equal to total player days over the period divided
by the sum of total monthly actives over the same period.

10: Omnichannel games include titles that are available both on the casino
floor and digitally.

11: MLB SGP bets per Active who placed 1+ SGP bet on an MLB market during the
2024 MLB season (same-store).

12: NFL SGP mix reflects the percent of NFL bets during the 2024 NFL regular
season that were Same Game Parlays (same-store).

13: Cross-sell rate is the percent of Online Sports players in multi-product
markets that placed 1+ iGaming bets. Measurement period reflects the NFL
regular season.

14: Represents the increase in the percentage of Nevada digital FTDs that have
gone on to be active in their home Single Account Single Wallet (SASW) state
after visiting Nevada following SASW launch in August 2024.

 

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 investment by Entain and MGM
Resorts in 2024), 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 worldÕs 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: 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
(https://coralracing.sharepoint.com/sites/IRComms/Shared%20Documents/General/US/Results%20&%20Parent%20Investments/FY24%20Update%20-%20Feb%202025/www.mgmresorts.com)
. Please also connect with us @MGMResortsIntl on X as well as Facebook and
Instagram.

 

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