Shares in Entain PLC rose 10%, bouncing off nine-month lows, after its US joint venture BetMGM reported a sharp swing to profitability and started to return cash to its parent companies.
The sports betting and igaming outfit returned $270 million in cash to parent firms Entain and MGM Resorts International in the final quarter of the year. The JV is 50%-50% owned.
EBITDA came in at $220 million, a big turnaround from a $244 million loss in 2024.
This was off the back of strong revenue growth driven by gains in both online sports betting and iGaming, with net revenue jumping 33% to $2.8 billion.
BetMGM chief executive Adam Greenblatt said its updated strategy was now “coming together at scale,” delivering “record performances” across key areas. Sports net revenue rose 63% for the year, while iGaming was up 24%.
Management now expects revenue in 2026 to rise to between $3.1 and $3.2 billion, with adjusted EBITDA forecast in the range of $300-$350 million.
A prior target of reaching $500 million in adjusted EBITDA by 2027 was reiterated too, while BetMGM also said its policy of maintaining a minimum unrestricted cash of $100-125 million provides sufficient liquidity alongside its $150 million undrawn revolving credit facility.