The results for the third quarter for MGM Resorts was a mixed bag, with quarterly earnings per share coming in well short of expectations but revenue just missed out on projections, coming in at $4.2 billion instead of the $4.21 billion expected. The return was still a Q3 record for the company and up year-over-year thanks to adverse impacts from last year’s cyberattack.
BetMGM operating income was down substantially year-over-year, with just $3.2 million in operating income compared to $12.6 million last year. Nonetheless, gross gaming revenue was up around 20% on the year for both sports betting and igaming for the brand.
MGM knew 2024 was an investment year for BetMGM brand
While those numbers were down, MGM Resorts CEO Bill Hornbuckle indicated the company knew this would be a costly year and is still happy with how its joint venture with Entain is trending.
“We’ve said and we still believe this, particularly with the new product lineup coming into the third and fourth quarter for football that 2024 was going to be an investment year. I think the new product…and I call out our friends and Entain that ultimately deliver this for us…t has done what it needed to do,” Hornbuckle said. “It is faster. Our parlays are up a couple of hundred basis points, as I indicated earlier. Our retention is up, which we think is positive.” The top line — the very top line of GGR is up close to 20% for the quarter. And so we find ourselves continuing to want to invest to grow the top line.”
During SBC Summit North America earlier this year, BetMGM CEO Adam Greenblatt said that 2024 would be the year the brand “reestablished momentum” with a focus on product, retention and share of voice.
On the Entain earnings call earlier this month, Entain CFO and Deputy CEO Rob Wood lauded the integration of Angstrom’s betting technology and its impact on parlay popularity.
Hornbuckle echoed Wood’s comments, noting that through the first eight weeks of the NFL season, parlay and same game parlay wagering was up over 200% YoY.
Hornbuckle also said BetMGM was in a position where the company no longer needed to infuse new capital into it. He also said there are no more planned acquisitions for the MGM Interactive brand, which runs LeoVegas.
MGM still not interested in buying out Entain
As is always the case during MGM earnings calls, Hornbuckle was asked if the company will be buying Entain out of its position in the JV in the future.
“Our relationship with Entain continues to strengthen. I think I’ve said it last call, stating on this call. We think the management change has been productive, and I think in the long haul will be good for both their business and ours. We like the product and the direction it’s going and what we’ve done. And so we like where we are with them. There’s always room for improvement on both sides of this. But for now, that’s our position, and that’s really all I’m going to say about it.”