BetMGM has reported $657m (£489.7m) in Q1 net revenue, marking a 34% year-on-year (YoY) increase, as bosses cited “strong underlying player engagement metrics” as a key factor for the rise.
Adjusted EBITDA totalled $22m – a stark contrast to the $132m loss BetMGM posted in the opening quarter of 2024 – with the metric rising $154m in the space of 12 months, with last year pegged as a “year of investment” by bosses.
The operator’s igaming vertical contributed the lion’s share of the topline figure, with the $443m generated representing an increase of 27% YoY from Q1 2024’s total of $348m.
Management said this was driven by the company’s “leading igaming offering”.
However, online sports betting produced an even greater climb, with BetMGM posting a 68% YoY rise in revenue to $194m, a notable increase from the $116m generated in the corresponding period last year.
The operator attributed the improved performance to a strengthened product offering, as well as better player engagement and the expansion of BetMGM’s net gaming revenue (NGR) margin.
BetMGM holds a 22% market share for igaming in the US and Ontario, while online sports betting came in at 8% in the same metric for the reporting period.
In the three months ending 31 March, BetMGM accepted $4.1bn in total wagers, a 29% YoY improvement, while the operator’s GGR hold rate sat at 8.2%, a marginal fall from Q1 2024’s 8.7%.
BetMGM’s number of active monthly users grew by 6% YoY, surpassing the one million mark once again for the first quarter to sit just shy of 1.1 million.
The increased engagement is thanks in part to the growth seen in BetMGM’s igaming division, though that rise was partially offset by the company’s approach to online sports betting player segmentation and management.
Within igaming alone, average monthly actives rose 43% and active player days grew by 39% YoY, an increase aided by the exclusive content found across BetMGM’s free-to-play and real-money games.
The MGM Resorts International and Entain US- and Ontario-facing JV recorded an improvement in cross-sell engagement, with a 13-percentage point increase in the numer of online sports betting consumers engaging with igaming.
Likewise, the number of sports bets wagered per active user grew 28% YoY, while a “redefined approach to player retention” inspired an increase in handle per active user of 37% YoY.
There was a 4.8 percentage point spike in parlay bet mix, as the business continued to tap into the benefits of Angstrom Sports-powered markets.
BetMGM’s display in the first quarter of the year prompted bosses to note their “exceeding confidence” that the operator will surpass previously issued financial guidance.
However, management opted to officially reaffirm its guidance, which expects net revenue between $2.4bn and $2.5bn, alongside a positive EBITDA outcome.
There is also confidence that the online sports betting division will produce a positive contribution over the course of full-year 2025, as well as reaching the $500m EBITDA mark within the “coming years”.
Adam Greenblatt, BetMGM CEO, reflected on the beginning of the year and issued an optimistic outlook for the rest of 2025.
He said: “2025 is off to an encouraging start for BetMGM as we execute our revised strategic plan.
“The momentum we built in the second half of 2024 continued into the first quarter as we implement our powerful igaming strategy, enabling us to grow faster than the market and at scale.
“In online sports, we are elevating our brand and delivering improved performance, even in the face of unfavourable sports outcomes during key moments in the quarter.
“As we approach May, we remain confident in achieving full-year positive EBITDA in 2025, supported by solid underlying activity trends and our successful delivery of positive EBITDA in the first quarter.”
The post BetMGM adjusted EBITDA swings to positive following $154m jump first appeared on EGR Intel.
CEO Adam Greenblatt praises the “encouraging start” to 2025 as operator sees 34% rise in net revenue for first three months of the year
The post BetMGM adjusted EBITDA swings to positive following $154m jump first appeared on EGR Intel.