BetMGM's Strong 2025 Lifts MGM and Entain Stocks

BetMGM Performance Highlights

BetMGM, the joint venture of MGM Resorts and Entain, reported impressive fiscal year 2025 results, driving a significant stock surge for its parent companies. The venture announced a 33% year-over-year revenue increase and a successful shift from loss to profitability.

Financial Overview and Growth Drivers

For fiscal year 2025, BetMGM posted net revenue of $2.8 billion. The company achieved a positive EBITDA of $220 million, marking a $464 million improvement from the previous year's loss. This growth was fueled by a 24% increase in iGaming revenue to $1.83 billion and a 63% surge in online sports betting revenue to $903 million. The venture also distributed $270 million to its parent companies in the fourth quarter.

Market Impact and Stock Performance

Following the announcement, MGM Resorts International stock climbed 9%, while Entain shares jumped 7.7%. The strong performance and positive outlook signal robust health in the online gaming market, boosting investor confidence.

Future Outlook

BetMGM's record performance has positioned it for continued growth. The company projects net revenue between $3.1 and $3.2 billion for fiscal year 2026, with an adjusted EBITDA target of $300 million to $350 million. This demonstrates strong execution and a confident outlook for the iGaming and sports betting sectors.

FAQ

Q: What was BetMGM's total revenue for fiscal year 2025?
A: BetMGM reported total net revenue of $2.8 billion for fiscal year 2025, a 33% increase year-over-year.

Q: How did the market react to BetMGM's results?
A: MGM Resorts' stock rose by 9%, and Entain's stock increased by 7.7% following the news.

Source: Investing.com