Entain’s betting operator rises on iGaming boom and sports betting gains
Entain’s sports betting operator, BetMGM, posted strong revenue growth thanks to record iGaming performance and an improved online sports betting strategy.
The sports book and iGaming giant told the market on Tuesday that it achieved $2.1bn (£1.69bn) in net revenue for the year, up seven per cent from 2023.
Its iGaming division led this growth, generating $1.5bn (£1.21bn) in revenue, a 13 per cent increase year on year.
Online sports betting revenue also rose four per cent, driven by a 14 per cent rise in monthly active players, reflecting an investment in customer acquisition and retention.
The gaming platform drove Entain’s share price up nearly eight per cent on Wednesday, reaching £748.80.
Despite revenue growth, the firm recorded a total earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of $244m (£196.64m) in 2024, citing the year as a period of investment.
The company noted that December’s customer-friendly sports results cost it $50m (£40.30m).
Yet chief executive Adam Greenblatt stayed positive, as the firm aims to turn EBITDA positive in 2025.
“Our improved product, accelerating growth, and enhanced efficiency give us confidence that online sports will be contribution-positive in 2025”, he said.
The sports betting operator also highlighted key strategic moves in the past year, like the launch of its sport-book in the US, which secured $150m (£120.90m).
Looking ahead, the firm expects to generate between $2.4bn and $2.5bn (£1.93-2.01bn) in net revenue for 2025, turning EBITDA-positive for the first time.
This would mark an estimated $250m (£201.50m) year on year improvement.
At the end of 2024, the Ladbrokes owner’s shares slumped seven per cent after it was sued by Australian authorities over a failure to comply with anti-money laundering rules.
The Australian Transaction Reports and Analysis Centre (Austrac) said on Monday that Entain’s Australian subsidiary failed to properly identify anti-money laundering risks in its first proceedings against an online betting company.
Entain had been struggling with a tricky trading period last year, during which it has been weighed down by £2bn’s worth of acquisitions and a series of compliance battles.