MGM Resorts reported earnings for the first quarter Wednesday, and CEO and President Bill Hornbuckle had some interesting things to say about the changes happening at BetMGM’s co-owner Entain.
“I think Stella is a breath of fresh air,” Hornbuckle remarked when asked if there’s been any positive changes in how Entain’s approaching the BetMGM business of late.
He’s referring to Stella David, who took over as Entain’s interim CEO in December and was also tapped to replace outgoing Board Chairman Barry Gibson in the same position this coming September. Hornbuckle was impressed by David's involvement in the budding Brazil sports betting market, and also by her decision to have BetMGM Adam Greenblatt speak to the sportsbook’s importance in a company town hall.
Entain has undergone a lot of changes in recent months, from David’s respective appointments to a strategic realignment that sees possible divestment of major assets, but Hornbuckle said that he likes the direction his sportsbook partner is going:
“I think things have changed, and I think for the much better.”
BetMGM Roadmap
BetMGM was a major topic of discussion when the casino and hospitality giant presented its Q1 2024 performance today.
Hornbuckle and company leadership remain patient and optimistic for the sportsbook’s future potential, but they also acknowledged that it has a long way to go before it gets to the level that they’d like it to.
“We recognize product deficiency, but I like the roadmap, I like the team, and I like where we’re going,” Hornbuckle said.
He admitted that Q1 was rough for all sportsbook operators since “no one won a Super Bowl bet, and no one won a March Madness bet” either, pointing out how bettors beat the house on both occasions.
Currently, iGaming looks to be a major focus for the company as it continues to invest in BetMGM’s development. Hornbuckle asserted that “obviously iGaming is a real opportunity over time,” so a lot of attention will be paid to improving BetMGM’s iGaming interface and product experience.
100% ownership of BetMGM also remains under the “Long-Term Digital Growth” section of the company’s roadmap too, and Hornbuckle concluded that “everyone’s agreeing to the roadmap” when referencing Entain’s part in the whole deal.
Record Earnings for MGM Resorts
The operator generated $4.4 billion in consolidated net revenues during the first quarter, an increase of 13% compared to Q1 2023.
It also achieved record results in several categories in this windfall. MGM China’s adjusted property EBITDAR grew 78% year-over-year to book a record for quarterly performance. Meanwhile, net revenues for the segment came in at $1.1 billion, which was a 71% increase from the prior year quarter. Adjusted property EBITDAR also clocked in at $301 million, marking a sizable leap from Q1 2023’s $169 million.
The company’s Las Vegas properties hit record Q1 net revenues too, recording $2.3 billion for a 4% increase year-over-year. It’s a hot start to 2024 for MGM Resorts, considering it also reported record-setting results in Q4 2023 as well.
