Entain’s US joint venture BetMGM has said it expects to post a loss for the full year as it ramps up marketing spend.
BetMGM – the US-based sports betting and gaming group jointly owned by London-listed Ladbrokes owner Entain and MGM Resorts International – reported an underlying loss of 123 million US dollars (£96 million) for the first half of 2024.
The group said it was expecting a similar result for the remaining six months and said investment in its iGaming business over the second half will be more than first thought.
We have exceeded our goals for both acquisition and retention, which should lead to higher year-over-year revenue growth for the second half of this year into 2025
Adam Greenblatt, chief executive of BetMGM
Adam Greenblatt, chief executive of BetMGM, said: “The first half of this year has been very important in laying the groundwork for BetMGM’s future.
“2024 is a year of investment, focusing on improving our customer experience and stepping up our level of investment in players.
“We are encouraged to see this strategy delivering accelerating momentum.
“We have exceeded our goals for both acquisition and retention, which should lead to higher year-over-year revenue growth for the second half of this year into 2025.”
BetMGM saw net revenues rise 6% to 1 billion US dollars (£780 million) over the first half, with growth picking up to 9% in the second quarter from 3% in the first three months.
It said it was confident of meeting its goal to reach 500 million US dollars (£390 million) in annual underlying earnings “in the coming years”.
Shares in Entain fell 3% on London’s FTSE 100 Index.
Entain, which also owns Coral, has seen shares drop more than 50% in a difficult past year.
It recently hired Gavin Isaacs – who was previously chairman of Games Global and was on the board of Entain’s US rival DraftKings – as its new chief executive, ending a months-long search for a new head of the struggling gambling giant.
Mr Isaacs will join the sports betting giant on September 2.
Earlier this year, Entain pledged to carry out a review of its betting brands after posting an £879 million loss in its most recent annual results.
Part of that was from a £585 million penalty agreed with HM Revenue & Customs to settle charges related to alleged bribery offences in Turkey.
Former chief executive Jette Nygaard-Andersen resigned in December last year after the settlement agreement, following reports that shareholders were unhappy with her leadership.