A major legal sports betting company is adjusting its full-year revenue guidance.
Entain — the co-owner of BetMGM — is updating its current trading and online net gaming revenue guidance for FY2023 amid a strategy to accelerate performance and improve shareholder value. The company projects full-year online net gaming revenue in FY2023 to be up a low double-digit percent, while proforma revenue will be down a low single-digit percent.
Entain attributes the lowered expectations to adverse sporting results impacting margins, safer gambling measures, regulatory costs, and slower growth than expected in Australia and Italy.
The company anticipates an EBITDA guidance of between $1.2 billion and $1.28 billion in 2023. Group revenue, which reached $5.2 billion in 2022, is expected to have low double-digit growth.
Despite the lower-than-expected guidance, Entain has benefited from the strong performance of its SuperSport acquisition in Croatia and the continued growth of the BetMGM betting platform.
“We continue to attract more customers than ever before to enjoy our products and services. BetMGM remains on track to deliver positive EBITDA in H2 and a full-year NGR performance at the top end of our expectations, and we are particularly excited about the product improvements that we are rolling out over the NFL season,” said CEO Jette Nygaard-Andersen.
Entain expects BetMGM — one of the largest online betting sites in America — to report between $1.8 billion and $2 billion in net gaming revenue in FY2023. In H1 2023, the sportsbook generated $944 million in revenue, up 55% compared to the same period last year.
Entain has put a plan in place to improve the company’s performance beyond FY2023, which includes a comprehensive market review, simplifying operations, and migrating acquired businesses. One of those businesses includes sports forecasting and data analytics company Angstrom Sports, which Entain acquired in a deal valued at $160 million earlier this year.
The company also purchased sportsbook and casino operator BetCity for roughly $500 million in January. Entain also acquired sports media company 365scores in April for $160 million.
Entain plans to share additional plans of action for improved performance in November.
