- iGaming, sportsbook revenue surge in first quarter
- Operator reiterates forecast of EBITDA positive for 2025
BetMGM said Monday that first-quarter revenue surged 34%, with the operator reiterating the view that it will be positive on the basis of earnings before, interest, taxes, depreciation, and amortization (EBITDA) for the entirety of 2025.
The 50/50 joint venture of MGM Resorts International (NYSE: MGM) and Entain Plc (OTC: GMVHY) said net sportsbook revenue for the first three months of the year jumped 68% while iGaming turnover increased by 27%. Sportsbook handle climbed 29% while net gaming revenue (NGR) margin rose by 110 basis points.
2025 is off to an encouraging start for BetMGM as we execute our revised strategic plan,” said CEO Adam Greenblatt in a statement. “The momentum we built in the second half of 2024 continued into the first quarter as we implement our powerful iGaming strategy, enabling us to grow faster than the market and at scale.”
He added that in the online sports wagering space, BetMGM continues to boost its brand even as customer-friendly outcomes weigh on the industry. Even with unfavorable results on the Super Bowl and the NCAA Tournaments, BetMGM was EBITDA-positive in the first quarter to the tune of $22 million.
BetMGM Could Exceed 2025 Guidance
In February, BetMGM forecast 2025 net revenue of $2.4 billion to $2.5 billion on EBITDA of up to $250 million. The operator said it’s possible those figures could be topped.
“BetMGM’s year-to-date performance provides increased confidence in exceeding guidance, however we remain mindful it is still relatively early in the year. As such, we reaffirm our expectations for FY 2025 to be EBITDA positive, and Net Revenue guidance of $2.4 billion to $2.5 billion,” according to the press release.
Upon delivering its initial 2025 outlook, BetMGM said it expects to reach $500 million in annual EBITDA over the next several years and that guidance was reiterated today. The operator added that its first-quarter sportsbook numbers were aided by improved engagement and product enhancements as well as an emphasis on what it described as premium mass bettors.
“Broader market range, improved pricing, and enhanced parlay offering contributed to strong gains in player economics and activity metrics,” added the gaming company.
iGaming Lifts BetMGM Top Line in Q1
While it appears likely that no new states will add iGaming this year, internet casinos are popular in the jurisdictions permitting them and that’s good news for operators such as BetMGM. The company is proving adept at cross-selling sports bettors on iGaming, telling investors it improved that metric by 13% year-over-year in the first quarter.
“1Q Average Monthly Actives up +43% reflecting our leading iGaming offering and focused marketing investment,” said BetMGM in the statement. “Active Player Days up +39% YoY driven by unique and exclusive content across both real-money and free-to-play engagement games.”
In the March quarter, BetMGM posted iGaming revenue of $443 million, or more than double the $194 million it notched in sportsbook turnover.
The post BetMGM Off to ‘Encouraging’ 2025 Start, Reiterates Positive EBITDA Forecast appeared first on Casino.org.
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