Strong start with strategic partner
CEO Bill Hornbuckle highlighted the positive momentum in Brazil: “In Brazil, we have seen evidence of early traction with healthy retention rates. Also, having a fantastic media partner like Grupo Globo has provided flexibility in marketing, allowing us to be very deliberate on entry."
Then he added: “We are focused on executing our marketing plan throughout the second quarter as this business continues to ramp up, and we’re excited to launch our live dealer platform from the MGM brand later in May.”
Marketing investment and strategic timeline
COO Corey Sanders echoed Hornbuckle’s enthusiasm while acknowledging the operational ramp-up: “Things are starting off terrific in Brazil, we’ve been live since Q1... The real marketing dig against the business will occur over the next six months, then we’ll see those investments begin to tether.”
He admitted to a slightly delayed start: “We probably got off to a little bit of a slower start than we anticipated... but principally, the real marketing dig... will occur over the next six months.”
Financials and losses
Despite encouraging signs, MGM Digital’s aggressive marketing push led to financial strain:
-Net revenue was flat at US$128 million, compared to Q1 2024.
-Adjusted EBITDAR fell by 83% YoY, with a loss of US$34.4 million.
-Group-wide EBITDA dropped to US$637 million, down from US$673 million in Q1 2024.
Ambitious market share goals
MGM is setting long-term targets, aiming for a 10%+ market share in Brazil by 2029, recognizing the country’s US$7 billion projected digital gambling market (from a total $41B global TAM). For comparison, the company targets only 1%-5% in Europe.
Hornbuckle had earlier said at a JP Morgan event: “Brazil is the push. Brazil is really where it’s all going to be about. We think initially it’s an US$8bn market.”
He emphasized the unique advantage of the Globo partnership: “We think there’s leverage off that database and off those people... which I think ultimately will uniquely position us to really excel there because if you’re not online already, it’s laborious.”
BetMGM and Group performance
While MGM Digital is absorbing upfront losses, the BetMGM unit (focused on the U.S. and Ontario) posted US$657 million in revenue, a 34% YoY increase.
According to Hornbuckle, “the spotlight shone brightest on BetMGM out of all MGM segments this quarter.”
Group-wide, MGM Resorts reported US$4.3 billion in net revenue, down 2% year-over-year.
Source: GMB
