BetMGM Hits Targets Ahead Of Schedule, Delivering Profits In Q2

Must read

[ad_1]

Ahead of this week’s 2023 first-half business update, BetMGM guided toward profitability for the final six months of the calendar year.

The subject of profitability is a sensitive one for major sportsbooks as Wall Street pressures leading operators to turn a profit in the fifth year since the U.S. Supreme Court’s historic PASPA ruling. On Wednesday, BetMGM demonstrated to investors that it is ahead of schedule.

Amid robust same-state growth and bonus optimization efforts, BetMGM achieved positive EBITDA (earnings before interest, taxes, depreciation, and amortization) during its second quarter of 2023, a three-month period ending June 30. The busy period includes the NBA Finals, the NHL’s Stanley Cup Finals, and the NFL Draft among annual events on the sports calendar.

At the same time, BetMGM reiterated revenue guidance for full-year 2023 in the range of $1.8 billion to $2 billion. BetMGM is now guiding toward the high end of the range, the venture said Wednesday. BetMGM is a 50-50 joint venture between MGM Resorts and Entain, one of the top European gambling operators. BetMGM still intends to turn a profit in the second half of the year.

“I am pleased with the significant progress we have made during the first half of 2023 as we continue our strong growth and remain on our path to profitability,” BetMGM CEO Adam Greenblatt said in a statement. “Our focus remains on building a sustainable, scalable, and returns-focused business with leading products that our players enjoy responsibly.”

Financial highlights

BetMGM finished the first half with net revenue from operations of $944 million, a figure that implies revenue of $468 million over the last three months. The operator credited a new bonus optimization system and an enriched player account management platform for improved margins over the first half.

During the period, BetMGM increased its sports net gaming revenue margins by 300 basis points while generating a 65% increase in revenue per customer for players acquired before 2022. At the start of the year, BetMGM refined its analytics framework by using its data science capabilities to hone its approach to player bonusing.

Sign Up For The Sports Handle Newsletter!

On the state level, BetMGM improved same-state player acquisition costs by 8% over the same period from 2022. The metric is closely watched across the industry as operators look to rein in marketing expenses after years of spending heavily on promotions. BetMGM offers sports betting in 21 North American markets, including Ontario. It also offers iGaming in five U.S. states. On the digital side, BetMGM reported same-state net revenue growth of 25%.

Delving further into the metrics, BetMGM indicated that each of its annual digital sportsbook cohorts launched from 2019 through 2022 delivered “positive contribution profit” in the second quarter. BetMGM defines contribution profit as net gaming revenue minus direct costs (excluding depreciation, amortization, and staffing expenses) in a given state.

Since the results underscore BetMGM’s ability to generate faster returns from more recently acquired customers, the metrics represent the “most notable takeaway” from the venture’s mid-year update, according to JMP Securities analyst Jordan Bender.

Last year, FanDuel became the first U.S. sportsbook in the post-PASPA era to generate profitability in a single quarter. Although FanDuel is guiding to full-year profitability in 2023, no operator has reported positive EBITDA for a full 12-month period since the high court’s ruling.

Declining market share

While BetMGM continues to post impressive figures on the iGaming side, its market share from online sports betting has tailed off relative to its competitors. It maintained a market share of 11% in the first half of the year, with a higher figure of 13% in states where the operator went live on day one. Its comparable market share was 13% and 20%, respectively, at the end of 2022, according to Truist Securities analyst Barry Jonas.

MGM Resorts posted fractional gains on Wednesday to close at $50.17 a share. After a challenging year in 2022, MGM is up 35% year-to-date. On the London Stock Exchange, Entain jumped 4.7% to 1,360 pence.

BetMGM issued the update ahead of MGM Resorts’ second-quarter earnings call next Wednesday after the bell. Besides MGM, two other leading operators — DraftKings and Caesars Entertainment — are scheduled to report quarterly earnings next week.



[ad_2]

Source link

More articles

- Advertisement -spot_img

Latest article

tutorial jackpot mudah mesin slot mahjong ways 2 langsung maxwin 100 jutateknik spesial dapatkan slot scatter hitam mahjong wayscara menjadi tak terkalahkan di permainan mahjong terbaruslot terbaik pada masa ini di pegang oleh perusahaan pragmatic playbasecamp di buat heboh karena penemuan pola gacor slot online zeusdua sejoli berbagi pola gacor slot online princess untuk dapatkan hoki bersamaliburan ke sapporo menggunakan uang hasil kemenangan slot online mahjongalasan bet 800 akan lebih gacor pada permainan slot mahjong waysketemu cara mudah akali sistem slot mahjong ways jaminan banjir scattertidak mengenal kalah dalam bermain slot gacor terbaruhanya butuh modal algortima slot mahjong ketemu celah maxwin ratusan jutatrik menipu bandar judi dengan bermain slot online all in betcara cepat profit bermain permainan mahjong ways 2 onlineguru sekolah swasta menyarankan memakai pola slot dari dia untuk menang di mahjong ways2kantin universitas di grebek karena menemukan pola slot gacor olympusapakah pemain receh akan kesulitan bermain slot olympus setelah update bet minimal 800menggunakan fitur buy spin untuk mengakali minimal bet dari gates of olympuspasangan suami istri membuat pola untuk kemenangan slot online olympusbikin geleng geleng kepala cara ter jitu mengalahkan bandar slot online ternyata beginimain slot online olympussecara teori sangat gampang jackpot main slot olympus 1000 dengan bet dan modal besarcara mudah menang besar dalam bermain permainan mahjong terbaru dari pg softkemenangan besar dengan pola spin baru slot starlight princess 1000 cair 200 jutamekanik handal penemu pola slot online gacor mahjong waysgunakan prediksi ai untuk menentukan pola gacor yang tepat sebelum main slot mahjong ways 2admin agus bocorkan jam gacor mesin slot mahjong ways 2 sekali spin cair 1 jutatrik terbaru menempuh jalur jackpot besar dengan cara spin manual di permainan slot online mahjong ways 2mudah profit cara cepat jackpot dengan memainkan permainan slot online yang lagi naik daungadis di perkosa pola slot online untuk memberikan kemenangan di mahjong ways2minuman herbal untuk menambah hoki di slot online bonanzacara pintar generasi z mendapat penghasilan tetap di mahjong waysrela dimodifikasi menjadi robot agar bisa menang di slot mahjong wayssekarang juga nikmati slot anti rungkad olympus spesial bandar borneotogel aslisekali spin jamin jackpot besar dengan trik ini ternyata gampang bangetmodal besar memberikan jaminan menang slot mahjong ways lebih gacorcara menentukan banjir scatter maxwin pada permainan slot mahjong provider pgsoftpola permainan slot 30 spin manual pertama jamin jackpot super di permainan gates of olympus pragmatic playtidak bohon begini cara mudah jackpot dalam bermain permainan sweet bonanza 1000 dari pragmatic playbongkar kontainer yang berisi ratusan pola gacor olympusbule di bali menerobos pola slot online mahjong ways2 untuk dapatkan scatter hitamoknum dishub palak supir angkot akibat jp slot online mahjong ways2warteg penjual pola slot online hoki mahjong ways2lima abg indonesia meminta maaf akibat penemuan pola slot gacor online princess x1000slot gacor permainan gates of gatotkaca 1000 jamin perkalian x1000 dalam jackpot di bet 4 ribu rupiahikutin pola gacor plot twist yang sesungguhnya pada slot mahjong waysramalan pola mahjong ways dengan menggunakan statistik bet milik pria sigmaakun sakti pilihan admin menjamin kemenangan pertamamu di permainan slot pragmatic playinfo terbaru memberantas bandar judi slot yang curang tidak membayar memberdemo di depan kantor walikota demi mendapatkan pola gacor slot online princes x1000polisi memburu pelaku pemecah pola slot online gacor zeustukang grab mengantar pola slot online gacor pg softmaksimalkan kemenangan besar slot olympus x500 dengan bantuan teknologi artificial intelligence googlekenaikan minimal bet slot pragmatic play justru membuat makin gacor dan gampang maxwinprovider pragmatic play keluarkan slot mahjong wins terbaru yang mudah di bantai pemain slot onlinemodal tap tap doang malah menang besar starlight princess x1000cara menang adu mekanik dengan bet 800 slot olympuspermainan slot online starlight princess 1000 buatan pragmatic play paling dicari para pemain slot online karena terbukti ampuh jackpotmudah banget profit di permainan slot gates of olympus 1000 modal 50 ribu rupiah jadi 1 juta rupiah dengan metode paling jituupdate besar pada permainan pgsoft mahjong dengan minimal bet 800 bisa scatter hitamberbuat baik kepada semua orang terutama anak yatim agar bisa menaikkan keyword mahjong ways ke discoverrahasia menang konsisten dengan main game slot online di situs dewata88cara ampuh jackpot dengan aplikasi khusus slot mahjong ways auto banjir wild emaspernikahan anak smp di bandung akibat jp puluhan juta di slot online princesstabrakan beruntun pola slot online bonanza memberikan pemain jadi hoki