BetMGM raises Q3 guidance after 23% revenue growth

JERSEY CITY - BetMGM LLC reported third-quarter net revenue of $667 million on Tuesday, a 23% year-over-year increase, prompting the sports betting and iGaming operator to raise its full-year 2025 guidance. The company’s joint owner Entain plc (LSE:ENT) has shown strong market performance, with InvestingPro data showing a remarkable 53.35% price return over the past six months.

The company, jointly owned by Entain plc (LSE:ENT) and MGM Resorts International (NYSE:MGM), posted EBITDA of $41 million for the quarter, representing a $57 million improvement from the same period last year. Entain maintains impressive gross profit margins of 61.39%, according to InvestingPro data, demonstrating operational efficiency in its gaming operations.

BetMGM’s iGaming segment generated $454 million in net revenue, up 21% from the previous year, while online sports betting revenue increased 36% to $202 million. The company reported a 6% increase in average monthly active users. This growth aligns with Entain’s broader revenue trajectory, which shows a 5.14% increase over the last twelve months. Want deeper insights? InvestingPro offers exclusive financial metrics and 6 additional ProTips for Entain.

Based on these results, BetMGM raised its full-year 2025 guidance to net revenue of at least $2.75 billion and EBITDA of approximately $200 million. The company also announced plans to distribute at least $200 million to its parent companies before the end of 2025.

"BetMGM’s momentum from H1 continued into Q3, underpinned by the ongoing execution of our strategic plan," said Adam Greenblatt, Chief Executive Officer of BetMGM, in a press release statement.

The company maintained its market position with a 15% gross gaming revenue market share in active markets, including 21% in iGaming and 8% in online sports betting.

BetMGM attributed its growth to improved marketing efficiency, enhanced player management, and platform improvements. The company highlighted product enhancements that delivered its "fastest, most user-friendly and most complete product to date" and the successful launch of its "Make it Legendary" campaign featuring actor Jon Hamm.

The company expects to end the year with approximately $100 million in unrestricted cash after distributing excess cash to its parent companies, with future distributions planned on a quarterly basis. For investors tracking Entain’s performance, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, presenting a potential opportunity for value investors.

In other recent news, Berenberg has reiterated its Buy rating on Entain PLC, maintaining a price target of £14.00. The firm highlighted the strong performance of Entain’s joint venture with MGM Resorts, BetMGM, as a significant factor in its positive outlook. BetMGM has seen a notable increase in net gaming revenue growth this year. This growth has resulted in an improvement of over $400 million in EBITDA compared to the previous year. The analysis from Berenberg underscores the financial progress of BetMGM, indicating potential upside for Entain. These recent developments reflect the company’s ongoing financial momentum.

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