BetMGM has provided an update on its 2021 performance and outlook for 2022, informing investors that it expects its FY2022 net revenue to exceed $1.3bn thanks to expansion into new US states and markets.
Jointly owned by MGM Resorts International and Entain plc, the sports betting and igaming operator also predicted it will reach a positive EBITDA in 2023 based on its current assumption of future live markets.
BetMGM said its market share is in line with its long-term target of 20% – 25% in US sports betting and igaming, while claiming to be the number two operator across these verticals with a 24% market share for the three months to November 2021. The firm added that it remains the market leader in igaming with 30% market share for the same three month period.
Updating investors, it confirmed that it is currently live in 19 jurisdictions – four igaming and 19 sports betting – and it expects to reach approximately 40% of the US adult population with two further sportsbook launches in Illinois and Louisiana in Q1 2022. Retail sportsbooks in Puerto Rico and both online sportsbook and igaming in Ontario, Canada are anticipated later this year.
In FY2021, BetMGM noted it has had a “strong financial performance” as net revenue from operations is expected to be approximately $850m, ahead of management expectations and up nearly five times from the previous year.
Same-state growth in net revenue from the firm’s operations is anticipated to realise a 140% improvement year-over-year, while EBITDA loss is expected to be in the range of $420m-$440m, in line with its expectations.
BetMGM stated its cost per acquisition was in line with management’s forecast, reaffirming expectations that it will achieve its long-term acquisition cost of $250. Player values are also in line with expectations, supporting the long-term total addressable market opportunity in North America of approximately $32bn.
Looking ahead to FY2022, the operator predicts that its net revenue from operations will continue to grow and exceed $1.3bn thanks to investments in additional markets and product deployments.
Alongside the aforementioned sports betting and igaming launches in 2022, BetMGM will be expanding its Bingo product and the BetMGM Racing app into additional states while continuing to enhance its products in existing markets.
Looking further ahead, BetMGM believes it can obtain a positive EBITDA in 2023, based on its current assumption of future live markets thanks to a “positive contribution in several states, some within one year of launch” driven by a “prudent, data-driven marketing strategy” and leveraging its omni-channel offering.
The operator concluded by stating the investment by MGM Resorts and Entain is expected to be approximately $450m in 2022, bringing the combined total investment from both parties to approximately $1.1bn since its 2018 launch.