Yahoo Finance MGM Resorts' (MGM) BetMGM Optimistic About 2023 Prospects
MGM Resorts International’s MGM sports betting and iGaming partner BetMGM provided 2023 outlook along with 2022 business update. The company is optimistic about 2023 and expects EBITDA to be positive in the second half of 2023.
BetMGM operates online sports betting and iGaming in five markets and Sports Betting in 20 markets globally. Considering its extraordinary performance and management’s efficient planning, MGM, with Entain plc, is expected to invest an additional $150 million in fiscal 2023 in the company.
BetMGM ended fiscal 2022 on a strong note, establishing itself as the top player in this business in North America. The expected net revenues from operations of BetMGM in fiscal 2022 are $1.44 billion.
With regard to the performance and future outlook of the company, Adam Greenblatt, chief executive officer of BetMGM said, “With continued and unwavering support from our shareholders, we look to 2023 confident in achieving further key milestones, including $1.8 to $2 billion in net revenue from operations and being EBITDA positive in the second half of 2023.”
Price Performance of MGM
Shares of the company have increased 25.5%, outperforming the Zacks Gaming industry’s growth of 17% in the past six months. The company is benefiting from pent-up consumer demand, high domestic casino spends and robust demand for sports betting. Sports betting and iGaming continue to be major growth drivers for the company.
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MGM is witnessing high business growth from the operations of BetMGM. During the third quarter of fiscal 2022, net revenues from BetMGM operations came in at $400 million, suggesting growth of 90% year over year. As of November 2022, this partner company earned market share of 22% in the U.S. sports betting and the iGaming space.
Zacks Rank & Key Picks
MGM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the Zacks Consumer Discretionary sector are World Wrestling Entertainment, Inc. WWE, H World Group Limited HTHT and Manchester United plc MANU.
World Wrestling Entertainment currently sports a Zacks Rank #1. WWE delivered a four-quarter average earnings surprise of 25.2%. The company’s shares have risen 76.1% in the past year.
The Zacks Consensus Estimate for WWE’s 2023 sales and EPS indicates growth of 4.9% and 10.7%, respectively, compared with the 2022 estimates.
H World sports a Zacks Rank #1. The stock of HTHT has risen 37.7% in the past year.
The Zacks Consensus Estimate for HTHT’s 2023 sales and EPS implies growth of 31.9% and 250.8%, respectively, compared with the 2022 estimates.
Manchester United carries a Zacks Rank #2. MANU delivered a trailing four-quarter earnings surprise of 34.4%, on average. Shares of the company have surged 67.2% in the past year.
The Zacks Consensus Estimate for MANU’s 2024 sales and EPS indicates a rise of 11.4% and 27.8%, respectively, from the year-ago levels.
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