BetMGM Turns Profitable Amid Market Growth, MGM Stock Gains

Entain PLC’s US joint venture with MGM Resorts International (NYSE: MGM), BetMGM, has reported a profit for the first quarter of 2025, marking a significant improvement from the previous year’s losses. The company’s EBITDA reached USD22 million, driven by a 34% increase in net revenue. This positive development comes amid a broader rise in gambling stocks following a speech by the UK chancellor. The UK stock market is also gearing up for an eventful third quarter, with the upcoming election adding to the anticipation.

Entain’s US Joint Venture Reports Surge in Net Revenue

Entain PLC has announced a remarkable turnaround for its joint venture, BetMGM, which posted a profit in the first quarter of 2025. This marks a significant recovery from the USD132 million loss reported in the same period last year. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) reached USD22 million, fueled by a 34% rise in net revenue.

The surge was particularly notable in the iGaming and online sports sectors. Additionally, the total betting handle saw a 29% increase, reinforcing the company’s financial recovery. Entain has maintained its full-year revenue guidance, projecting between $2.4 billion and $2.5 billion, and aims for BetMGM to achieve $500 million in EBITDA in the future.

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MGM Stock Up Over 2%

MGM’s stock has shown positive movement recently, with a current price of $32.39 as of April 28, 2025. The stock opened at $31.88, reaching a day high of $32.72.

Notably, the stock has fluctuated between a 52-week low of $25.30 and a high of $47.26, reflecting significant volatility. Key metrics such as a beta of 1.964 and a trailing P/E ratio of 13.495832 highlight the stock’s performance dynamics.

Analysts recommend a ‘Buy’ with a target high price of $60.00, suggesting potential for further growth. Recent price history indicates a gradual upward trend, reflecting investor confidence in the company’s future prospects.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.