MGM Resorts’ online joint venture, BETMGM, saw a 90 percent increase in 3Q22 revenue and said it’s on track to meet its more than $1.3 billion target by year-end.
Total revenue in that quarter was $400 million. MGM Resorts’ share of the company’s operating loss was $24 million.
BetMGM is a joint venture with the U.K.’s Entain. The company said it’s the leading online operator in the U.S. and is active in 24 jurisdictions, with access secured, or anticipated in another 31 states.
“MGM remains the clear leader in iGaming with a 29 percent market share, and BetMGM commands 22 percent share in active markets when combining U.S. sports betting and iGaming,” MGM Resorts CEO Bill Hornbuckle said on a call with analysts. “As we hit the halfway point of the NFL season, we’re encouraged by the preliminary metrics, reinvestment has remained within our expectations and market appear to be acting more rationally.”
He confirmed that he expects the unit to be on track for profitability next year.
Stocks in U.S. sports books were higher on Thursday after Caesars Entertainment on Wednesday reported that its digital unit had turned EBITDA positive in October and had reached an inflection point.
For MGM as a whole, revenue gained 26 percent to $3.4 billion driven by a record Las Vegas Strip performance.
The net loss was $577 million, compared to net income of $1.4 billion a year earlier. This was mainly due to a $1.2 billion increase in noncash amortization related to its Macau properties.
The result missed analysts expectations and the shares slumped 10 percent in early trading.
The Las Vegas Resorts reported revenue of $2.3 billion, up from $1.4 billion a year earlier, up 67 percent on the prior quarter as the city surged back to life following the Covid pandemic.
On the other hand, the company’s Macau operations continued to suffer, with revenue of $87 million, down from $289 million a year earlier. The group also posted a surprise loss. Property closures during the period due to Covid outbreaks were the main reason for the drop in Macau.
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