Chasing losses: BetMGM ‘invests to grow’ as market share dips
Chasing losses: BetMGM ‘invests to grow’ as market share dipsBetMGM trading update, Boyd’s beat, Disney commentary, Wynn smashes it, Red Rock’s new customers +More
I see a red door and I want it painted black. BetMGM playing market share catch-upThe red and the black: BetMGM said yesterday it made an EBITDA loss of $67m for FY23, despite the company reaching profitability in the last three quarters of 2023. Revenue for the year came in at the upper end of the $1.8bn-$2bn target, at $1.96bn, while same-state growth hit 14%. Losses were ahead of consensus estimates of $82m-$90m.
In the dark: The analysts at Jefferies noted no guidance was given for this year, although the company’s previous comments talked about it being an “investment year” to help address recent market share losses. Consensus has the company making $2.48bn, or ~27% up YoY, while EBITDA losses are estimated to come in at $73m.
Adding fuel: Greenblatt reiterated the message from the December investor meeting that the additional capability brought by the Entain-acquired Angstrom along with the potential from a “largely untapped” Las Vegas omni-channel opportunity would propel the business forward.
Typing… Jefferies said the ownership structure at BetMGM “remains in the conversation” but while there was no mention in the update, the “fluidity of leadership and direction” at Entain leaves open the discussion regarding remaining partners, merging or a “myriad of other permutations.” Venture capital firm Yolo Investments manages in excess of €500m in capital across 100 exciting fintech, gaming and blockchain companies. The Yolo Investments' Gaming fund, regulated by the Guernsey Financial Services Commission, has taken positions in fast-growth suppliers and operators, including Dabble and Enteractive. Yolo Investments (yolo.io) wants to hear from readers of this newsletter. Get in touch with your pitch, or for a chat about innovative products which can plug into our investment ecosystem. +MoreBowl bets: Chiming with analysis earlier this week from EKG, the team at Macquarie also estimated $1.5bn will be bet on this weekend’s Super Bowl. They added that the best-case scenario for the sportsbooks would be a 49ers win in a low-scoring game.
Caesars has repaid its outstanding 6.25% senior secured notes due 2025 in full, plus accrued and unpaid interest. The repayment forms part of Caesars refinancing of its 2025 debt maturities, including the $989m in 5.75% senior secured notes it confirmed repayment of earlier this week. Golden Matrix shareholders will meet on March 19 to vote on the proposed $300m purchase of Meridianbet, which will operate as a wholly owned subsidiary. The acquisition would give GMGI access to B2C iGaming ops for the first time. Playtech and Hard Rock Digital have launched the first set of games under their partnership, delivering online slots, live dealer and table games through HRD’s Hard Rock Bet platform in New Jersey. Inspired Entertainment will provide its virtual sports products to Kambi’s sportsbook platform. What we’re readingSwitch hitter: Las Vegas mayor Carolyn Goodman has rowed back on her comments that the A’s should work out a deal to stay in Oakland and now says they are welcome in Las Vegas. Via the Las Vegas Review-Journal. Disney earnings commentaryEpic proportions: Disney’s venture into OSB got shunted into the background during the Q4 call as the company’s “skin in the game” $1.5bn equity stake in Fortnite producer Epic Games stole the headlines. CEO Bob Iger noted it was Disney’s “biggest entry into the world of video games.”
One-stop channel hop: Disney announced a day ahead of the earnings that ESPN’s full channel suite will be going DTC in the fall as part of a package deal with FOX and Warner Bros. Iger said Disney’s mission was to “make ESPN into the preeminent digital sports brand, reaching as many sports fans as possible.”
Boyd earnings reactionAnother good print: The Las Vegas Locals-to-regional operator appeared to surprise the analysts with forecast-beating Q4 earnings, up 3.4% to $954m, and while adj. EBITDA was down 1.3% to $356m, it was ahead of consensus by ~8%.
Build it and they will come: On the earnings call, CEO Keith Smith said the optimism for Las Vegas was supported by the “continued strength of the southern Nevada economy.” He noted that Las Vegas ranked #1 for job creation last year.
Wynn winsDifferent gear: F1 in November helped Wynn Las Vegas find “another gear” as adj. EBITDA for that property alone of $271m – up 24% YoY – zoomed past consensus forecasts of ~$228m. Las Vegas revenue came in at $697m, up 19%.
‘What a quarter, what a year’: CEO Craig Billings was understandably upbeat on the call with analysts. “It’s more evident than ever that we are the go-to spot for the best customers attending citywide events like F1,” he said.
Sphere joy: Billings noted that with Wynn being the closest property to the Sphere “as the crow flies” its emergence as the premier venue in Las Vegas had been additive to its business. “We see an uptick in terms of very high-quality occupancy,” he said.
Debt note: Post-results, Wynn announced a private add-on offering of $400m to a previously announced $600m offering of 7.125% senior notes due 2031. The new money will fund the repurchase up to $800m of outstanding 5.5% senior notes due in 2025. Kambi Group is the leading provider of premium sports betting technology and services, empowering operators with all the tools required to deliver world-class sports betting and entertainment experiences. The Group’s services not only include its award-winning turnkey sportsbook but also an increasingly open platform and a range of standalone sports betting services from frontend specialists Shape Games, esports data and odds provider Abios, and AI-powered trading division Tzeract. Together, we are limitless. For more info, go to www.kambi.com Red Rock boostRocks that I got: The new Durango property, which opened in December, is performing better than expected, attracting new customers and giving a one-property boost to the Las Vegas Locals market.
The big game: Lorenzo Fertitta, vice-chair, said the company was “pretty positive and pretty excited” about Sunday’s Super Bowl. “It feels like it's shaping up to be one of – if not maybe the best weekend from a big event standpoint that Las Vegas has seen,” he added. Earnings in briefCentury Casinos: In releasing preliminary earnings, the company said it was experiencing revenue and cost headwinds in several of its markets, helping to explain the below consensus guidance for revenues at $143m at midpoint and adj. EBITDA at $25m (midpoint), 6% down on consensus.
Svenska Spel: Sweden’s state-owned gaming operator saw Q4 NGR fall by 3% YoY to SEK2.12bn ($202m), although the sports and casino segment was up 7% to SEK576m. Pre-tax profit for the group fell 31% to SEK486m. FY23 revenue was down marginally at SEK8.03bn.
XLMedia: In a pre-close trading update, the UK-listed gaming affiliate provider said FY23 revenue of ~$50m and adj. EBITDA of ~$12m would be in line with market expectations. It added that as of the end of December cash in hand had reduced to $4.8m due to deferred acquisition payments, media partner minimum guarantee payments and other exceptional costs.
🤏 Extra large to extra small: XLMedia shares in a slump Calendar
InclineBet provides performance-driven digital marketing services to the global regulated iGaming market. Our team bring unrivalled expertise in digital marketing, online casino and sports betting to deliver high-performance UA, CRM and Creative services. iGaming isn’t merely another market we serve, it’s the only market. Click to learn more about what we do and how we can help. An +More Media publication. For sponsorship inquiries email scott@andmore.media. |
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