DAVY VIEW

BetMGM released a Q3 update this morning. Revenue in iCasino was +21% year-on-year (yoy) and growth in online Sports was strong, +36%. The group updated its guidance with revenue expected to be at least $2.75bn (Davyf: $2.74bn) and aEBITDA of c.$200m (Davyf: $165m). It also expects to return at least $200m to the parents before the end of 2025 (we have c.$55m factored in for Entain (ENT)). This is a good update from BetMGM. Handle growth and hold in sports will reassure the market given concerns around prediction markets and sports results. iCasino growth is a little behind expectations but growth is still healthy. Another quarter of positive aEBITDA gives further confidence that it has inflected into sustained profit growth.