DAVY VIEW

BetMGM has reported H1 revenue growth of 6% to $1bn with EBITDA losses of $123m, both broadly in line with consensus. The CEO notes that H1 has been an important year in laying the groundwork for the future. The outlook statement reiterates that 2024 will be an investment year and references greater marketing investment than previously expected, with H2 EBITDA losses expected to be similar to H1. This implies a FY EBITDA loss of c.$246m versus Visible Alpha consensus of -$18m and the Davy forecast of -$67m. Revenue growth in H1 is somewhat underwhelming in the context of the underlying growth rates in the US market, albeit largely in line with expectations. The expectation of greater year-on-year (yoy) EBITDA losses in 2024 is disappointing.