Ladbrokes owner Entain PLC (LSE:ENT) has revealed that BetMGM, its 50/50-owned joint venture with MGM Resorts International, saw revenue rise strongly in 2022, as the company targets positive earnings for 2023.
The FTSE 100-listed betting group said BetMGM net revenue was US$1.44bn in 2022, up 69% from about US$850mln in 2021, and ahead of its prior guidance of US$1.3bn.
The revenue increase was driven by higher gross gaming margins due to improvements to both customer experience and products, the company added.
It noted that BetMGM is well positioned to deliver 2023 net revenue of between US$1.8bn and US$2bn.
BetMGM suffered a loss before interest, tax, depreciation and amortisation of US$440mln in 2022, which Entain said was in line with prior guidance.
Positive EBITDA is the target for the second half of 2023, Entain said.
In a statement, BetMGM chief executive officer Adam Greenblatt commented: "2022 was a year in which we delivered against many key strategic initiatives and achieved several company milestones, including exceeding our financial targets, launching a redesigned BetMGM mobile app and furthering our commitment to responsible gambling."
Entain shares were 0.4% higher at 1,537p in late Thursday afternoon trading.