BetMGM will spend more than it expected to grow its customer base in another investment year, with some of that funded by debt.
The joint venture announced limited first-half details Monday morning. Specifics were sparse, as neither Entain nor MGM Resorts has publicly announced numbers yet.
BetMGM reported a negative first half EBITDA of $123 million, which it called “consistent with expectations” of an investment year. Second half EBITDA will be similar, the company said, and the shares of both parent company went in opposite directions Monday morning:
- Entain closed at a new 52-week low, 8.1% to 596.60 pence on more than three times its average daily volume.
- MGM saw a premarket drop turn around to close the day up 2.3% to $42.78.
BetMGM taking on debt
Average monthly active iGaming customers grew 18% in the second quarter compared to last year. That is double the 9% growth seen in Q1 despite no additional states launching.
BetMGM will invest more than initially expected in iGaming marketing in the back half of the year. That additional investment will be “funded by bank debt,” the company said.
The release did not break down how much Entain and MGM contributed toward this year’s expenses.
“Our iGaming business continues to perform strongly with attractive returns, and to maximize this strength and momentum, we plan to deploy additional marketing in the back half of this year,” CEO Adam Greenblatt said. “Our execution roadmap, building momentum and prospects ahead all support our confidence in BetMGM’s strong future.”
Angstrom integration ongoing
Angstrom’s full suite of analytics, risk and pricing capabilities will be fully integrated across BetMGM’s MLB, NBA and NFL products before NFL betting season starts.
Acquired by Entain last year to improve trading and pricing, Angstrom had “new markets and features” for the live for the MLB and the back end of the NBA season. That led to a 40% increase in active customers who placed an MLB same-game parlay this year, according to the release.
The volume of MLB weekly same-game parlays doubled compared to last year as well.
BetMGM by the numbers
Net revenue grew 6% to $1 billion in the first half, aided by 9% revenue growth in the second quarter. Online sports betting net revenue per active user was up 16% for the second half.
A successful marketing campaign around the Super Bowl led to “encouraging online sportsbook” cost per acquisition of first-time depositors.
BetMGM expects its single wallet to be available across all of its markets by adding Nevada before the NFL season starts.
