DAVY VIEW

The key take-aways from BetMGM’s trading update are: (i) its expectation that it will reach positive EBITDA in 2023F and (ii) its increased 2022F revenue guidance of $1.3bn, upgraded from >$1bn. Current year revenues look set to be greater than current expectations (Davy $1.11bn; consensus $1.19bn). Of equal importance is that its expected loss in 2022F looks to be less than that generated in 2021. This, coupled with a reiteration of its customer economics and its guided pathway to profitability next year, should provide comfort around its earnings prospects in the US. BetMGM is establishing itself as a leading US gaming operator, highlighting Entain, its part owner, as one of a small handful of top-tier global gaming operators. BetMGM will host a conference call at 15:00 today before Entain’s trading update tomorrow (January 20th) at 07:00 (all times UK/Ireland).