BetMGM Posts First Half Revenue of $1B, Calls 2024 ‘Year of Investment’

Posted on: July 29, 2024, 03:09h. 

Last updated on: July 29, 2024, 03:09h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

In its first half financial update, BetMGM said net revenue through the first six months of 2024 was $1 billion, a 6% increase from the year-earlier period.

BetMGM
The BetMGM logo. The gaming company said first half revenue soared while noting 2024 is a “year of investment.” (Image: NY Sports Day)

The operator added that based on gross gaming revenue (GGR) share for iGaming and online sports betting in the US and Ontario, Canada, its North American market share was 13% for the January through June period. There were some signs of momentum for the gaming company in the second quarter as net revenue increased 9% on a year-over-year basis and 3% from the first quarter. Second-quarter iGaming and sports betting net revenue surged 18% and 16%, respectively.

Those increases highlight accrued benefits from the July 2023 purchase of Angstrom Sports by Entain Plc (OTC: GMVHY).

Our online sportsbook players have been enjoying Angstrom-enabled product capabilities since the start of the baseball season, and we look forward to players enjoying this across our wider sports offering leading into the NFL season,” said BetMGM CEO Adam Greenblatt in a statement.

Angstrom is a data and analytics provider that leverages predictive modeling to create complex pricing and forecasting capabilities. Entain owns half of BetMGM, which is one of the largest US online sportsbook operators. MGM Resorts International (NYSE: MGM) controls the other 50%.

BetMGM Shows Some Progress, But Competition Still Fierce

In the first half of 2024, BetMGM posted an earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $123 million, but Greenblatt noted the operator exceed its customer acquisition and retention goals during the period.

The customer acquisition/retention commentary is crucial at a time when rivals DraftKings and FanDuel appear to be extending their long held duopoly in the domestic online sports betting industry — one that’s seen those two operators control more than 70% of the overall market.

BetMGM has found some momentum in iGaming where its North American market share is 22% and online casino could be a contributing factor in the operator’s expectations that revenue growth will be higher in the second half of this year and into 2025. BetMGM has an advantage in iGaming because some studies suggest that iGaming is complementary to casino operators’ land-based venues. MGM has one of the largest portfolios of US casinos and one of the biggest rewards programs.

Still, internet casinos are permitted in just six states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia — indicating that more legislative action is needed in the years ahead to drive growth in this form of wagering.

BetMGM Calls 2024 ‘Year of Investment’

As the operator previously stated, BetMGM views 2024 as a year of investment.

“Coupled with an improving sportsbook offering, and building on BetMGM’s iGaming strength which already delivers over $400 million contribution annually, expectation of greater than planned marketing investment in iGaming in 2H this year,” according to the statement.

While forecasting second half EBITDA that will be comparable to what was seen in the first six months, the gaming company said additional investments are expected to be funded by bank debt. BetMGM said it remains confident it can reach $500 million in EBITDA “in the coming years.”