BetMGM Q3 adjusted EBITDA more than doubles to $86m, but full-year guidance stays at the lower end

BetMGM, the North American joint venture owned by Entain and MGM Resorts International, has reported a sharp improvement in third-quarter profitability. Adjusted EBITDA rose 112% year on year, from $41m to $86m, while net revenue grew 7% to $710m.

The growth came even though monthly active users fell 3% to 878,000. BetMGM said the decline was expected, and it occurred despite the World Cup knockout stages falling within the quarter. The company pointed to strong player engagement and to its expansion in Canada, where it now operates in the newly regulated province of Alberta as well as Ontario. Contribution from online sportsbook operations increased from $202m to $216m.

For the year to date, net revenue is up 5% from $2.01bn to $2.11bn. Online sportsbook revenue rose 4% to $647m and iGaming rose 8% to $1.447bn. Retail revenue was flat in the quarter at $11m, but it is down 50% year to date at $23m after a weak second quarter for the brick-and-mortar business.

Chief Executive Officer Adam Greenblatt said the company delivered profitable growth with discipline and has improved the speed, stability and responsiveness of its product ahead of the football season. He said BetMGM continues to prioritize its strengths, particularly iGaming, while staying operationally nimble in a highly competitive environment. He added that the business is generating positive cash flow and adjusted EBITDA, which he said keeps it on track against its 2026 guidance.

Despite the strong quarter, BetMGM still expects net revenue and adjusted EBITDA to land at the lower end of its guidance ranges of $2.9bn-$3.1bn and $300m-$350m respectively. The company continues to target adjusted EBITDA of $500m in the coming years.

The results are significant for Entain, which faces pressure in other core markets, including a heavier tax burden in the UK. Reports also point to uncertainty in Brazil, where Entain had expected growth for its Sportingbet brand. Entain shares are down 42% year to date, though they rose about 4% on the day of the update, from £4.34 to £4.46. The group is due to publish its own third-quarter figures on 23 October. MGM Resorts shares were steady in pre-market trading at $29.90.