MGM Resorts International’s MGM sports betting and iGaming operator, BetMGM LLC, has put forward an update on its fiscal 2024 performance.

Jointly owned by MGM Resorts and Entain plc, BetMGM’s iGaming business showcased strong growth trends and delivered notable returns during the fiscal year on the back of improved product offerings and enhanced player engagement. Given the ongoing solid trends across iGaming and Online Sports, BetMGM expects to attain positive EBITDA in 2025, along with $500 million EBITDA in the long term.

Upon the fiscal year performance update, MGM stock gained 1.2% during the trading hours but inched down 0.3% in the after-hours trading session on Tuesday.

BetMGM’s Fiscal 2024 Highlights

The net revenues of this sports betting and iGaming operator increased 7% (and 13% on an adjusted basis) year over year to $2.1 billion. Average Monthly Actives grew year over year by 14% to 946,000 from 827,000 reported in fiscal 2023, attributable to strategic investment in player acquisition.

Net revenues in the iGaming and Online Sports segments increased year over year by 13% to $1.48 billion and 4% to $554 million, respectively. The net revenues under the Retail and Other segment declined 40% year over year to $70 million.

EBITDA during the fiscal year was $(244) million compared with $(62) million reported a year ago. The gap widened year over year due to approximately $50 million worth of negative impact from December's highly customer-favorable sports results.

Strategic Priorities of MGM Resorts’ BetMGM

During fiscal 2024, BetMGM’s top-tier iGaming content offerings, fueled by focused marketing investment, fostered Average Monthly Actives. Notably, in the fourth quarter of fiscal 2024, Average Monthly Actives grew 55% year over year.

It also strengthened Online Sports products through an efficient player engagement approach. The approach reflects upon several initiatives, including enhancing players' experience through features like quick bet, linear bet slip and live bet tracking, driving improved engagement and retention accompanied by optimizing promotional strategy with enhanced segmentation and predictive modeling.

Also, BetMGM’s additional efforts like leveraging unique omnichannel opportunities and ensuring players’ safety with responsible gambling prioritized across its business added to the fiscal year’s performance growth.

BetMGM’s Fiscal 2025 Outlook

BetMGM expects net revenues in fiscal 2025 to be in the range of $2.4-$2.5 billion. EBITDA is expected to be positive, increasing approximately $250 million on a year-over-year basis.

It also expects year-over-year contribution growth across its iGaming segment with positive results from the Online Sports segment in fiscal 2025.

MGM Stock’s Price Performance & 2025 Earnings Expectations

Considering its gaming side of the business, MGM Resorts’ continuous focus on sports betting and iGaming has driven solid top-line growth and helped reach new markets. Since its launch in 2018, BetMGM has been gaining market share, resulting in it currently operating in 28 markets.

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Shares of this owner and operator of casino resorts have inched down 2.4% in the past six months against the Zacks Gaming industry’s 20.1% growth. Although the company’s shares have underperformed its industry, its ongoing focus on sports betting and iGaming, along with international expansion, asset-light strategy and non-gaming activities, is likely to foster its growth in the upcoming period.

The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has moved south to $2.09 from $2.10 over the past seven days. The estimated figure indicates an 11.6% decline from the year-ago EPS of $2.37. Notably, its earnings surpassed the consensus mark in three of the trailing four quarters and missed on the remaining occasion, with an average surprise of 26.2%.

MGM’s Zacks Rank & Key Picks

MGM Resorts currently carries a Zacks Rank #3 (Hold).

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The consensus estimate for TCOM’s 2025 sales and EPS implies growth of 15.1% and 7.4%, respectively, from the year-ago levels.

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The Zacks Consensus Estimate for ATGE’s fiscal 2025 sales and EPS indicates an increase of 9.4% and 20.6%, respectively, from the year-ago levels.

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