Entain's BetMGM hits $1bn in H1 sales but investments hold back profits

29th Jul 2024 07:31

(Sharecast News) - Entain's BetMGM, the gambling company's sports betting and iGaming operator in the US, surpassed the $1bn mark for revenues in the first half, but still made a loss as a result of heavy investments during the period.

The division lost $123m on an EBITDA basis over the first six months of 2024, and is expected to record a similar result for the second half.

Entain said this was "consistent with expectations of 2024 being an investment year, supporting customer acquisition and enhanced player experience initiatives".

Net revenues from operations were up 6% on last year at $1.0bn, with growth accelerating from 3% in the first quarter to 9% in the second, helped by double-digit growth in both online sports betting and iGaming monthly active users.

BetMGM continued to expand its geographic presence during the first half, launching digital sports betting in North Carolina in March and district-wide in the District of Columbia post period-end in July.

The company now has a 13% market share of gross gaming revenue across the US and Ontario within sports betting and iGaming, Entain said.

"The first half of this year has been very important in laying the groundwork for BetMGM's future," said chief executive Adam Greenblatt.

"We are encouraged to see this strategy delivering accelerating momentum. We have exceeded our goals for both acquisition and retention, which should lead to higher year-over-year revenue growth for the second half of this year into 2025."