Up 40.35% this year, MGM is one of the gaming equities outpacing the broader market — a performance driven in part by the resilient Las Vegas Strip as well as the Macau resurgence
Beynon lauded the operator for “upmarket” moves in Sin City, including the acquisition of Cosmopolitan and the sale of the Mirage. Those transactions increase MGM’s leverage to luxury consumers that are often less vulnerable to economic downturns. The analyst added that BetMGM is thriving and said investors may not be fully appreciating the operator’s Macau exposure.
“For digital, we expect BetMGM to grow revenue ~35% in 2023 and continue to believe there are opportunities to solve for the 50/50 stake. With one of the strongest balance sheets, supportive shareholders, and a goal to be a global digital leader, we expect this opportunity to solve the stake issue to be a priority,” concluded the Beynon.
Translation: MGM owns 50% of BetMGM with Entain controlling the other half, but the former now has the resources to potentially buy the latter out of that arrangement.
Beynon lauded the operator for “upmarket” moves in Sin City, including the acquisition of Cosmopolitan and the sale of the Mirage. Those transactions increase MGM’s leverage to luxury consumers that are often less vulnerable to economic downturns. The analyst added that BetMGM is thriving and said investors may not be fully appreciating the operator’s Macau exposure.
“For digital, we expect BetMGM to grow revenue ~35% in 2023 and continue to believe there are opportunities to solve for the 50/50 stake. With one of the strongest balance sheets, supportive shareholders, and a goal to be a global digital leader, we expect this opportunity to solve the stake issue to be a priority,” concluded the Beynon.
Translation: MGM owns 50% of BetMGM with Entain controlling the other half, but the former now has the resources to potentially buy the latter out of that arrangement.