Home In-DepthData & Statistics MGM Resorts failures, Catena Media & AML: The week in numbers

MGM Resorts failures, Catena Media & AML: The week in numbers

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CasinoBeats delves into the fascinating numbers that are behind the stories of some of the most interesting industry players. The latest headlines reflect financial data from Betsson and PENN, as well an Australian AML penalty.


251.9

Betsson has published its financial results for Q4 of 2023 and the full year 2023. The group’s revenue was EUR251.9m, an increase of 14 percent year over year (Q4 of 2022, EUR220.6m), and a 36 percent organic growth compared to last year.

EBITDA was EUR71.9m for the Q4 (Q4 2020: EUR51.1m), up 40% YoY. The margin is 28.6%.

Operating profit for the quarter reached EUR57m with an increase of 42 percent YoY (Q4 2020: EUR40m), while net income came in at EUR43.3m.

The Q4 cash flow operating was EUR47.6m, while the net cash balance was EUR59.6m. (Q4 2020: EUR75.5m).

The group’s revenue for the year was up by 22% to EUR948.2m (compared with EUR777.2m in 2022), with a 40 percent organic growth.

EBITDA increased by 52 percent in 2023 to EUR262.7m (EUR172.4m, as of 2012), with a margin at 27.7%.

Operating profit for the entire year reached EUR210.5m (2022: EUR131.2m), up 60% YoY, with a margin 22.2 percent. The net income was EUR173m (2012: EUR114.7m), while the operating cash flow came to EUR230.4m.

In a reflection on the Q4 results and the year 2023, CEO Pontus Lindwall said: “The Group has reported the highest ever levels of revenue and operating profits, marking the eighth successive quarter of sequential increase.

The growth rate should be considered in the context of the World Cup, which was held in the same period.

Our vision is to provide the best gaming experience to our customers. We always strive to give them the chance to win. It means the margin of the sportsbook varies depending on sports results.


8

The New Zealand Department of Internal Affairs HTML1 has informed SkyCity Entertainment Group of its intention to bring civil penalties against the operator due to non-compliance of the Anti-Money Laundering and Countering Financing of Terrorism Act.

It outlines five causes of action that allege “significant issues with respect to the Act”, most related to historic matters but also referring to self-reported incidents.

SkyCity could be subjected to civil penalties imposed by a court, as per subpart 3 of the Act, which assesses a maximum liability of “NZ$8m aggregate” for these claims.

SkyCity stated that they are “disappointed” that the company hasn’t met its own standards, resulting in a penalty being filed. They also said that they wish to work constructively with department officials to quickly resolve these matters.

It also mentioned its AML/CFT Enhancement Programme, which has been implemented since the end of 2021. This programme aims to correct “historical shortcomings” and address compliance systems. The program involves substantial investments in technology and people as well as comprehensive reviews to determine areas that need improvement.

It added that the operator is “committed” to improving its systems and processes, especially in relation to AML/CFT issues and host responsibility.


41

Catena Media reported a revenue of EUR14,5m for Q4, down 41% from EUR24,5m in the same period last year.

The revenue for the entire year was EUR76.7m. This is a 22% decline from last year (2022: EUR98.6m).

In North America, the market’s headwinds have caused revenues to drop by 43 percent during Q4, to EUR12.3m. For the entire year, they fell by 21 percent to EUR67.1m (in 2022, EUR84.5m). North America accounted for 85 percent of Catena’s group revenues.

Look at the Q4 revenues. 80 percent of them came from agreements that were cost-per-acquisition, 17 percent from deals with revenue sharing, and 3 per cent, from fixed contracts.

After a decrease in the marketing expenditure by operators, and with “stiffer” competition, new deposits from ongoing operations fell 43 percent YoY during this quarter to 32 032 (Q4 2020: 56 040). The CPA agreements accounted for 84 percent of NDCs, while revenue sharing deals accounted for 16 percent.

NDCs for the entire year declined 19% to 184 257 (2022: 228 601).

The Q4 adjusted EBITDA for continuing operations fell by 88 percent to EUR1.5m (2022: EUR11.8m), with a margin 10 per cent. (Q4 2020: 48%) The adjusted EBITDA for the full year was EUR25.4m (down 47%) (2022 EUR48.4m) resulting in an margin of 33% (2022 49%).

Catena, to bolster their operations, has implemented several improvements in order to enhance user experience and provide greater value through improved product offerings, brand functionality, positioning, and impact. This results in a new level of personalisation.

The work will create “a solid platform” that is “revenue-enhancing”, starting in Q2 of 2024.

Catena also believes that cost-optimisation measures can bring about high profits and allow for focused debt reduction as well as strategic investments.

It will also reduce its presence on markets with unregulated frameworks and unclear regulations, and transition more to revenue-share deals that it believes will generate higher and sustainable revenues.

Catena’s CEO Michael Daly said: “We have implemented a broad-ranging investment program, including significant investments in tech and AI. This will help us to achieve our goal of becoming the leader in online affiliate marketing for sports betting and gaming in terms of data and technology.”

These projects are important in light of the Q4 results, which we found disappointing. I’m not happy with them. The investments were planned and started earlier in 2023. They have been increased since then. The investments are intended to prepare us for the long term and to return the group to sustainable growth.


1.4

PENN Ent.declared a revenue for Q4 of $1.4bn. This is down from $1.59bn in Q4 2022. The total revenue for 2023 was $6.36bn. This is a small decline from 2022’s $6.4bn.

The gaming revenue was $1.04bn in the fourth quarter (2022 Q4: $1.27bn), and $4.9bn overall for 2022.

The Q4 loss was $358.8m (2022: $20.8m), and the loss for the entire year is $491.4m (2022: 221.7m).

In Q4, adjusted EBITDAR was $112.5m (2022: $468.3m). Adjusted EBITDAR for the entire year was $1.51bn (Q4 2022: $468.3m).

PENN’s President and CEO Jay Snowden stated: “PENN has delivered another solid quarter in terms of property performance, while investing in our digital high-growth business that we think will generate significant shareholder value over the long term.”

PENN’s property revenue in the Q4 was $1.37bn. This is a slight drop from last year’s $1.38bn (Q4 2020: $1.38bn). Property revenue for the year was $5.7bn. This is a slight decrease from the year before (2022: 5.75bn).

According to property regions, the Northeast led with $662.9m in revenue (Q4 2020: $667.1m), then the Midwest ($290.6m) (Q4 2012: $282m), the South ($285.1m; Q4 2022 $304.4m), and the West with $133.7m.

The adjusted EBITDAR in the Q4 was $476.4m (2022 Q4: $487.1m), with a margin at 34.7%. In 2023, the property-adjusted EBITDAR will be $2.03bn (in 2012: $2.11bn).

Snowden said that the performance of properties this quarter was boosted by strong demand from customers, mild weather and our focus in customer experience and operational excellence.

The fact that 10 of the properties in our portfolio have achieved the highest revenue ever for their fourth quarter shows how our unique omnichannel strategy and geographic diversification has paid off.


22

MGM Resorts has seen a strong performance in the fourth quarter of 2023, with revenues of $4.4bn (Q4 2020: $3.6bn) up by 22 percent.

The casino revenue for the first quarter was $2.2bn, up from $1.5bn in Q4 2022. Rooms were next at $900m (Q4 2020: $897.9m), then food and beverages at $727.9m and retail at $422m.

Operating income was $419m for the third quarter, compared to $2m operating loss in the previous year’s quarter. This is due to an uptick in net revenues and “a decrease in amortization expenses of $1.2bn related to the MGM Grand Paradise Gaming Subconcession” partially offset by the $1.1bn gain from the sale of The Mirage during the year-ago quarter.

The net income was $313m, compared to $284m in Q4 2022.

MGM Resorts’ net revenues for the year totaled $16.2bn (up 23 percent YoY, 2022 was $13.1bn). Casino revenue came in at $8.2bn ($5.7bn in 2012), while rooms were $3.5bn ($3.1bn in 22), and food and beverages at $2.9bn ($2.6bn is expected to be achieved by 2022).

The 2023 Net Revenue rose, “primarily due to a rise in revenues from MGM China as well as an increase of non-gaming revenue in Las Vegas Strip Resorts. This was partially offset by the decrease in casino revenue in our Regional Operations”.

Bill Hornbuckle , CEO of MGM Resorts and president Bill Hornbuckle said: “Our Las Vegas Strip Resorts set all new records for the full year and fourth-quarter Adjusted Property Earnings per Share (EBITDAR).

Our premium positioning in Las Vegas and the offerings we provide enable us to make incremental profits during important events, such as our inaugural Formula One Race and Super Bowl. The year 2024 has a great start, with our Marriott partnership and opportunities to expand our international mix as well as our number of convention rooms nights.


37

Gaming Innovation Group has made significant progress in splitting up its media and platform units to separate businesses by 2024. It recorded an ‘all time high’ of EUR35.6m for Q4 of 2023, up 37% from the results of EUR26m reported during Q4 of 2022.

The group’s FY2023 revenue was EUR126m. This is up 41% on the comparative 2022 results of EUR91m. Its EBITDA adjusted stood at EUR61m. (FY2022 EUR34m).

GiG Media’s business prospects were enhanced with the purchase of Kafe Rocks. This acquisition boosted the online casino media business and the lead generation for North American and South American markets.

As quoted by Petter Nylander, “The completion of the KaFe Rocks purchase in December 2023 is in line with our desire to remain the top casino affiliate.

We are confident about the assets acquired and we see significant growth potential, especially in North America and LatAm.

Nylander finished with a summary of a successful period in the history of the Group: “We are committed to our strategy, which includes the split planned between GiG Media, Platform & Sportsbook, and the GiG Media. This move is a strategic one that will open up new opportunities for growth and maximize value to our shareholders.

As we near the 2024 split, we feel confident setting long-term financial goals for GiG Media as well as Platform & Sportsbook. We are well-positioned to succeed in the future with our solid performance, diverse earnings and robust growth potential.

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