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Entain PLC on Tuesday said its US betting joint venture, BetMGM LLC, should break-even this year after sales accelerated in the second half of 2024.
BetMGM, is jointly owned by Entain and MGM Resorts International.
Entain said BetMGM’s iGaming offering, strengthened sports product and enhanced player engagement had delivered accelerating growth and performance metrics through 2024.
As a result, it expects to be earnings before interest, tax, depreciation and amortisation positive in 2025 with net revenue of $2.4 billion to $2.5 billion.
In response, shares in Entain, which also owns bookmakers Betfair and Paddy Power, surged 7.8% to 749.50 pence each in London on Tuesday afternoon.
In 2024, BetMGM reported net revenue of $2.10 billion, up 7.1% from $1.96 billion a year prior.
By product, iGaming revenue increased 13%, online sports revenue rose 4% although retail fell 40%.
Revenue accelerated in the second half with adjusted net revenue up 19% compared to just 6% in the first six months of 2024.
BetMGM recorded an Ebitda loss of $244 million, narrowed from $827 million a year prior, including $50 million negative impact from ‘favourable’ sporting results. On a normalized basis, fourth quarter Ebitda trended towards breakeven demonstrating marketing optimization and growing operational leverage, it noted.
Average monthly users increased 14% to 946,000.
BetMGM reiterated its confidence in the pathway to $500 million Ebitda supported by ‘scale, revenue growth and operational leverage’.
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