Initially, BetMGM had expected to see net revenue of $1.3bn; however, this was revised up in recent weeks.
Meanwhile, the brand expects to post an EBITDA loss of $440m, which is in line with prior guidance. BetMGM says its financial performance was hit by ‘higher gross gaming margins; same state CPAs reduced 21% annually due to data-focused marketing strategy; and an improved approach to player bonusing.’
However, BetMGM was also keen to highlight that its online sports net revenue margin has doubled its revenue in Q4 2022 vs Q4 2021.
Furthermore, BetMGM added that it expected to see net revenue of between $1.8bn and $2bn during 2023.
Adam Greenblatt, BetMGM CEO, commented: “The talented team at BetMGM continues to execute our plan with purpose, passion, and discipline.
“2022 was a year in which we delivered against many key strategic initiatives and achieved several company milestones, including exceeding our financial targets, launching a redesigned BetMGM mobile app and furthering our commitment to Responsible Gambling.
“With continued and unwavering support from our shareholders, we look to 2023 confident in achieving further key milestones, including $1.8 to $2 billion in net revenue from operations and being EBITDA positive in the Second Half of 2023.”
Overall, BetMGM will be pleased with its expected earnings in 2022, though it will see a significant loss on its EBITDA – something that many of its biggest competitors, such as DraftKings, also see due to extensive marketing spending.
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