Entain PLC on Thursday reported a strong financial performance in 2023 from its US joint venture, BetMGM.
Entain is a London-based sports betting and gambling operator which owns Coral, Ladbrokes, PartyPoker and other brands.
BetMGM is a sports betting and iGaming operator across North America, jointly owned by Entain and MGM Resorts International.
Entain said net revenue from operations at BetMGM grew 36% year over year to $1.96 billion, at the upper-end of the $1.8 to $2.0 billion guidance range.
Entain said key metrics across both iGaming and online sports betting improved year over year, including average monthly actives, first time deposits, hold percentages, bonus levels, net gaming revenue and cost per acquisition.
BetMGM was earnings before interest, tax, depreciation and amortisation positive in the second half of 2023 with an expected full-year 2023 Ebitda loss of around $67 million.
Entain reiterated guidance from December 2023 of an Ebitda target of around $500 million in 2026.
BetMGM Chief Executive Adam Greenblatt said: ‘We were able to achieve strong organic growth, while executing against key strategic initiatives that lay the foundation for 2024 and beyond.’
‘The attainment of Ebitda profitability over the last three quarters of 2023 validates the effectiveness of our business model and provides the basis from which to invest further in expanding our sports offering through the integration of Angstrom and leveraging our largely untapped Las Vegas omni-channel advantages.’
‘This clear strategic direction underpins our confidence in achieving our targets and building long-term, sustainable value for shareholders.’
Shares in Entain rose 1.5% to 987.00 pence in London on Thursday.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
