REG - Entain PLC - BETMGM 2Q/1H 2025 UPDATE & FY25 GUIDANCE INCREASE

EntainAnnouncement

Tue 07:00

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RNS Number : 8902S  Entain PLC  29 July 2025

THIS ANNOUNCEMENT CONTAINS INFORMATION THAT QUALIFIES AS INSIDE INFORMATION IN
RELATION TO ENTAIN PLC

 

29 July 2025

 

BETMGM 2Q/1H 2025 UPDATE & FY2025 GUIDANCE INCREASE

 

Stronger than expected 2Q and 1H 2025 from successful strategic execution
supports increased FY25 outlook

 

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 Second Quarter 2025 ("2Q 2025") and First Half 2025 ("1H 2025")
performance.

 

·      Strong 2Q and 1H performance as BetMGM's ongoing strategic
execution drives strong and profitable growth

o  2Q Net Revenue up 36% YoY and EBITDA of $86 million (up $78 million YoY)

o  1H Net Revenue up 35% YoY and EBITDA of $109 million (up $232 million YoY)

·      Leading iGaming offering and enhanced player engagement delivered
2Q revenues +29% (1H +28%) with strong growth in player volumes and activity

·      Strong Online Sports performance with 2Q revenues +56% (1H +61%)
driven by refined player marketing and management and strengthened product

·      Upgrade to FY25 guidance and increased confidence in path to $500
million EBITDA in coming years

o  Expect FY25 Net Revenue of at least $2.7 billion and EBITDA of at least
$150 million(1)

 

Adam Greenblatt, Chief Executive Officer of BetMGM, commented:

"BetMGM has seen a strong first half of the year, delivering significant
revenue and EBITDA growth that is underpinned by the ongoing execution of our
strategic plan. The momentum we have built since the second half of 2024
accelerated through the first half of 2025. Our iGaming business continues to
deliver new records as we showed why BetMGM is the go-to destination for all
players, and in Online Sports, our refined player targeting and management
capabilities have driven strong engagement and player KPIs across the board.
BetMGM is healthier than it has ever been, a testament to the hard work of our
teams and colleagues across the business. Our stronger than expected
performance through 1H 2025 positions us well for the rest of the year,
reinforcing our confidence in the future and the many opportunities ahead."

 

Key Financial Highlights

 2Q and 1H 2025 BetMGM Financial Summary(1,2,3)
 $ millions, unless otherwise noted      2Q      YoY Change      1H      YoY          1H

2024
                                         2025                    2025    Change
 Net Revenue
           iGaming                       $449    +29%            $891    +28%         $695
           Online Sports                 $228    +56%            $422    +61%         $262
 Handle(4)                               $3,427  +25%            $7,515  +27%         $5,914
 GGR Hold %                              9.8%    +40bps          8.9%    (10)bps      9.0%
 NGR Hold %                              6.6%    +130bps         5.6%    +120bps      4.4%
            Retail / Other               $16     (5)%            $36     (15)%        $42
         Total Net Revenue               $692    +36%            $1,349  +35%         $999

 Contribution                            $191    +$88            $307    +$241        $66

 EBITDA                                  $86     +$78            $109    +$232        ($123)

 Average Monthly Actives (thousands)(5)  901     +7%             984     +6%          926

2Q/1H Financial Highlights

·      1H Net Revenue of $1.35 billion, +35% YoY delivering 1H EBITDA of
$109 million (up $232 million YoY)

·      2Q Net Revenue of $692 million, +36% YoY with continuing momentum
and strong underlying growth

o  iGaming Net Revenue of $449 million, +29% YoY, driven by leading offering
with exclusive content, differentiated engagement tools and enhanced player
management

o  Online Sports Net Revenue of $228 million, +56% YoY, reflecting
strengthened product and refined engagement

o  Average Monthly Actives +7% YoY

·      2Q EBITDA of $86 million (up $78 million YoY) underpinned by
positive contribution from both iGaming and Online Sports

·      Secured stabilized 14% 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 with no
further capital from parent companies expected

 

Operational highlights

·      Market leading iGaming offering

o  Continued investment behind leading iGaming business to acquire and retain
a broader pool of players at attractive payback periods

o  Strong player volumes and engagement KPIs underpin 1H outperformance

§ 1H Average Monthly Actives +38% and Active Player Days each month +34%(8)

o  Attractive player economics supported by:

§ Exclusive and unparalleled library of content including The Wizard of Oz,
Price is Right and Family Feud

§ Creative player engagement tools improved active player days and 2025
cohort retention

§ Further investment in live dealer business

§ Improved targeting and showcasing of promotions to cross-sell Online Sports
and iGaming players in our multi-product states

 

·      Strengthened Online Sports product and enhanced player engagement
approach

o  Significant growth in Online Sports demonstrates successful brand
repositioning, player acquisition and management, alongside ongoing product
improvements

o  Focused "premium mass" approach and enhanced CRM delivering a more engaged
and higher quality player base

§ 1H Handle per active +34% and NGR per active +70%(9)

§ 1H Active Player Days +14% with +24% more Bets per active(8,9)

§ 1H NGR margin improvement of +120 bps YoY

o  Strengthened product with broader offering and parlay capabilities, plus
enhanced UX navigation and app speed

 

·      Unlocking differentiated omnichannel opportunities

o  Growing flywheel benefits from Nevada omnichannel position with launch of
flagship app and nationwide digital wallet

§ Improved integration across omnichannel touchpoints supports efficient
acquisition and retention funnel offering unique player experiences

§ 30% growth in NV monthly actives in 1H; 4x increase in number of NV actives
continuing play in home state in 1H(10)

o  Omnichannel game titles and differentiated live dealer offering provide
BetMGM exclusive experiences

§ c50% of BetMGM's Top 20 grossing slot titles are omnichannel games,
including recently launched titles from The Wizard of Oz franchise(11)

 

 

Outlook

·      BetMGM's performance in 2Q and 1H 2025 provides increased
confidence in the long-term profitability and opportunities for the business

·      Stronger than expected second quarter supports further upgrade to
FY25 guidance(12):

o  Net Revenue guidance of at least $2.7 billion

o  EBITDA guidance of at least $150 million

·      Secured podium position in a large and growing total addressable
market with increasing operating leverage benefits, reinforces our confidence
in delivering EBITDA of $500 million in the coming years

 

1H 2025 Conference Call & Audio Webcast

·      An analyst call will be held today, Tuesday, July 29 at 2:00pm
UK, 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: https://app.webinar.net/GLRe4xP4xr6
(https://app.webinar.net/GLRe4xP4xr6)

·      There will be a 30 minute Q&A session. To participate in the
Q&A, please use dial ins below and register via the following link:
https://registrations.events/direct/Q4I72749949
(https://registrations.events/direct/Q4I72749949)

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

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

 

This announcement contains information that qualifies or may qualify as inside
information within the meaning of Article 7 of the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of English law by virtue of the European
Union (Withdrawal) Act 2018. The person responsible for releasing this
announcement on behalf of Entain is Simon Zinger, Group General Counsel.

Upon the publication of this announcement via a regulatory information
service, this inside information is now considered to be in the public domain.

 

 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, Contribution, and EBITDA are based on how management analyzes
the performance of the business, which are not prepared in accordance with
GAAP. EBITDA reflects the impact of employee long-term incentive compensation
programs. 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 (inclusive of cash and 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: Consolidated Gross Gaming Revenue (GGR) market share consists of last three
months latest reported for U.S. sports betting markets where BetMGM was active
(online and retail), last three months ending June 2025 for U.S. iGaming
markets where BetMGM was active, and last three months ending June 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 player days over the
period divided by the sum of total monthly actives over the same period.

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

10: Represents January-June 2025 vs. January-June 2024. Single Account Single
Wallet launched in Nevada on August 22, 2024.

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

12: Prior guidance provided June 16, 2025 communicated at least $2.6 billion
FY 2025 Net Revenue and at least $100 million FY 2025 EBITDA.

 

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), 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
(https://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 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 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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