BetMGM earlier guided Wall Street analysts to expect a fiscal-year 2023 that generated as much as $2 billion in net revenue. Today, the company disclosed that it had garnered $1.96 billion in that period.
Thanks to increases in all key metrics, net revenue grew 36 percent and same-store (expansion-adjusted) revenue was up 14 percent. First-time depositors and average monthly bettors both increased, as did hold percentages.
Although cash flow was positive in the latter half of fiscal 2023, the year-end result saw a negative return on investment of $67 million. BetMGM, a joint venture between MGM Resorts International and Entain, estimated that it presently has access to 49 percent of the total North American market.
This includes new markets Ohio, Massachusetts, Kentucky, and Puerto Rico (online only). Although sports betting has yet to launch in North Carolina (expected to do so next month), BetMGM has already secured a partnership with the Charlotte Motor Speedway, pending regulatory approvals.
The company restated earnings guidance for 2026 for roughly $500 million in cash flow. In a prepared statement, BetMGM CEO Adam Greenblatt said, “Our performance in 2023 demonstrates our commitment to delivering on our promises. We were able to achieve strong organic growth, while executing against key strategic initiatives that lay the foundation for 2024 and beyond.
“The attainment of EBITDA profitability over the last three quarters of 2023 validates the effectiveness of our business model and provides the basis from which to invest further in expanding our sports offering through the integration of Angstrom and leveraging our largely untapped Las Vegas omnichannel advantages. With this comprehensive roadmap in place, we can focus on driving accelerated player acquisition and retention and strengthening our current market position. This clear strategic direction underpins our confidence in achieving our targets and building long-term, sustainable value for shareholders.”
