BetMGM reports positive EBITDA contribution throughout Q2 2023
That suggests the business generated around $474m in revenue during Q2.
On a same-state basis, BetMGM said net revenue from digital operations was up by 25% year-on-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,” said BetMGM CEO Adam Greenblatt.
“Our focus remains on building a sustainable, scalable and returns focused business with leading products that our players enjoy responsibly.
“We look forward to the remainder of the year, buoyed by ongoing product improvements, tremendous support from our shareholders providing access to new assets and partnerships, and – above all – our extraordinary team at BetMGM.”
In addition to reaching the milestone of turning EBITDA positive for a full quarter, the trading update also celebrated several of BetMGM’s wins during the first half of this year.
In marketing, the cost per acquisition (CPAs) for new customers was improved by 8% on a same-state basis during H1, while bonus optimisation and player management also continued to have a positive impact, BetMGM said.Those factors combined to deliver enhanced GGR to NGR conversion, as the brand’s sports betting NGR margin increased by three percentage points year-on-year in H1, and digital sports revenue per player grew by 65% for players acquired in 2021 or before.
BetMGM also continued to expand its footprint across North America this year, with new online sports betting launches in Ohio, Massachusetts and Puerto Rico.
The brand is now live in 26 jurisdictions, and boasts a combined market share across iGaming and sports betting of around 18%.
For iGaming alone, BetMGM holds a market share of some 27%, while its share of online sports betting is markedly lower at around 11%.
Expectations for 2023
The results put BetMGM on track to deliver results at the upper end of a previously stated revenue guidance range for the full-year 2023, between $1.8bn and $2bn, it said.
The brand also remains on track to stay EBITDA positive throughout the whole second half of 2023, it added, despite additional investment in state launches in Kentucky and North Carolina, which were not originally planned for this year.
MGM and Entain also expect the brand to become self-sustaining during H2, they said, with no additional equity investment required from either company beyond the $150m previously committed for this year.
The joint venture owners continue to contribute “new technology, resources, and relationships to accelerate both BetMGM’s product evolution and its access to players,” they added.
One recent example is the use of Angstrom Sports’ technology, which was acquired by Entain earlier this month and is expected to significantly enhance BetMGM’s sports betting offering.