(Reuters) – U.S. sports-betting service BetMGM, a joint venture between MGM Resorts and Entain, posted core profit for the first quarter on Monday, supported by strong growth in its iGaming and online sports divisions.
The company has been pushing to grow its online presence and capitalise on the booming e-betting market amid stiff competition.
Its online sports division reported a 68% revenue growth despite unfavourable sports outcomes during key moments in the quarter.
Shares of Entain were up 5.3% at 619.4 pence by 1122 GMT, while MGM was up 0.4%.
BetMGM said its first-quarter results increased the company’s confidence in exceeding full-year guidance, but maintained a cautious tone.
It reaffirmed its expectations to be EBITDA positive and deliver net revenue of $2.4 billion to $2.5 billion in fiscal 2025.
BetMGM reported a core profit of $22 million for the three months ended March 31, compared with a loss of $132 million a year earlier.
(Reporting by Yamini Kalia in Bengaluru; Editing by Krishna Chandra Eluri)
Comments