BetMGM Raises 2022 Revenue Forecast to $1.44 Billion, Eyes Profitability in 2023
The joint sports wagering venture between Entain and MGM Resorts, BetMGM, has increased its fiscal year 2022 revenue projections to $1.44 billion, a significant jump from the original estimate of $1.3 billion. This notable rise is credited to a confluence of elements, including substantial expansion in the digital sports betting sector and the firm’s effective promotional campaigns.
Despite the upward revenue trajectory, BetMGM still anticipates an EBITDA deficit of $440 million for the year, consistent with prior predictions. The company ascribes this to its ongoing expenditures in market penetration and product enhancement. However, BetMGM underscored a considerable improvement in its online sports wagering profitability, with net revenue margins experiencing a twofold increase year-over-year in the final quarter.
Looking forward, BetMGM exudes confidence in its future outlook. The company forecasts its 2023 net revenue to land between $1.8 billion and $2 billion, fueled by entry into new territories and the sustained growth of internet-based gambling. BetMGM’s Chief Executive Officer, Adam Greenblatt, conveyed strong positivity about the company’s route to profitability, targeting the achievement of positive EBITDA in the latter half of 2023. He stressed the company’s dedication to ethical gaming principles, a primary area of emphasis for BetMGM alongside its financial objectives.
BetMGM projects strong 2022 income despite anticipating a significant EBITDA deficit. Their substantial marketing expenditures aim to rival sector leaders such as DraftKings, a common practice in the current landscape.
