For the year ended 31 December 2024, BetMGM reported total revenue of $2.1 billion (£1.69 billion/€2.03 billion), up 7% year-on-year.
In its Q4 and FY earnings results, published today (4 February), the group posted a negative EBITDA of $244 million, which marked a 29% increased drop on its EBITDA losses of $62 million the previous year.
BetMGM pointed to a “year of investment” as part of the reasoning behind its EBITDA losses despite a revenue uptick.
Igaming net revenue for BetMGM was up 13% year-on-year to $1.48 billion.
Online sports net revenue was also up by 4% to $554 million, with BetMGM citing “strengthened” products and “enhanced” engagement. This was based on a betting handle of $13.1 billion (up 20%), with a hold percentage of 8.6% (up 0.9%) over the 12-month period.
However, betting revenue was impacted by customer-friendly sporting results during the NFL season in December. The operator highlighted a $50 million “negative impact” attributed to these sports results.
Both Flutter and DraftKings have also flagged customer-friendly outcomes impacting their results in the last few months. In January Flutter issued a US profit warning and DraftKings in November downgraded its full-year revenue and earnings guidance.
Despite unfavourable sporting results, average monthly “actives” across BetMGM were up by 14% to 946,000 in 2024, according to the company. It pointed to its strategic investment in player acquisition in 2024 as a driver for the the increase.
The group launched its sportsbook in two new states in 2024, namely North Carolina and Washington DC.
In terms of market share, BetMGM said in 2024 it maintained a 14% GGR share within its active states. Broken down further, igaming had a 22% GGR market share and sports an 8% share.
Greenblatt hails 2024 a “year of investment” for BetMGM
BetMGM CEO Adam Greenblatt said of the full-year results: “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 normalised basis.
“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.”
BetMGM noted that it currently had $150 million in a revolving credit facility that it had not tapped and expected to require no further capital from its parent companies.
Positive EBITDA expected in 2025
The company has touted an “encouraging exit rate momentum” coming into 2025. The group has forecast that its full-year 2025 EBITDA will increase by $250 million year-on year, bringing the JV into the black.
BetMGM’s outlook for 2025 is a net revenue of between $2.4 billion to $2.5 billion.
It has reaffirmed its “confidence” that the JV has a “pathway” to an EBITDA of $500 million in future financial filings – something it set as a goal to hit in 2026 during an investor presentation last year.
Commenting on today’s results, CEO Greenblatt said: “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.”
Original article: https://igamingbusiness.com/finance/betmgm-hits-2-billion-revenue-in-2024-forecasts-positive-ebitda-in-2025/
