BetMGM

BetMGM has raised its FY 2025 net revenue guidance to at least $2.6 billion, up from the previous range of $2.4 billion to $2.5 billion, and now expects FY 2025 EBITDA to be at least $100 million, a significant upgrade from previous guidance of being EBITDA positive. This revision reflects continued strong net revenue growth in both iGaming and online sports, consistent with the 34% year-over-year growth reported in Q1 2025, and reinforces confidence in achieving $500 million EBITDA in the coming years. The company also reiterated its expectation that Online Sports will be contribution positive for FY 2025, in addition to strong contribution from iGaming.

Analysis

BetMGM has demonstrated continued strong performance into the second quarter of fiscal year 2025, prompting an upgrade to its full-year guidance. Net revenue for FY 2025 is now projected to be at least $2.6 billion, an increase from the prior range of $2.4 billion to $2.5 billion. More significantly, FY 2025 EBITDA guidance has been raised to at least $100 million, a substantial improvement from the previous expectation of merely being EBITDA positive. This enhanced outlook is supported by robust net revenue growth across both iGaming and Online Sports segments, which continued a trend broadly consistent with the 34% year-over-year net revenue growth reported in Q1 2025. The company also reaffirmed its expectation for the Online Sports segment to achieve contribution positivity for FY 2025, complementing the already strong contribution from iGaming. This sustained momentum underpins BetMGM's confidence in its strategic approach and reinforces its long-term target of achieving $500 million in EBITDA in the coming years. As BetMGM is a joint venture between MGM Resorts International (MGM) and Entain plc (ENT), this positive operational update and guidance revision reflects favorably on both parent entities. The financial metrics discussed, including Net Revenue, EBITDA, and Contribution, are non-GAAP measures used by management for performance analysis.

Key Decisions for Investors

• Investors in MGM Resorts International (MGM) and Entain plc (ENT) should view BetMGM's upgraded FY25 revenue and EBITDA guidance as a significant positive development, indicating strengthening fundamentals and accelerating profitability for their joint venture.
• Monitor BetMGM's H1 update for further details on Q2 2025 performance and confirmation of the sustained growth trajectory, particularly in handle growth and segment contributions.
• Consider the potential for this enhanced outlook to contribute to a re-evaluation of the parent companies, given BetMGM's clearer path to substantial EBITDA generation and its market-leading position.