Core Insights - BetMGM reported a significant financial turnaround in 2025, achieving $2.8 billion in net revenue, a 33% increase year-over-year, and $220 million in EBITDA, marking a nearly $500 million improvement from the previous year [3][4][7] - The iGaming segment remained the largest business line, generating $1.8 billion in net revenue, up 24%, while online sports betting (OSB) revenue accelerated to over $900 million, reflecting a 63% increase [1][6][8] - Management provided a positive outlook for 2026, projecting net revenue between $3.1 billion and $3.2 billion and adjusted EBITDA of $300 million to $350 million, with a target of exceeding $500 million in adjusted EBITDA by 2027 [7][14][15] iGaming Performance - iGaming generated $1.8 billion in net revenue for 2025, up 24%, with a contribution of over $500 million [1][6] - Average monthly active users in iGaming grew by 24% in 2025, with players engaging 14% more days per month [1] Online Sports Betting (OSB) Insights - OSB net revenue reached over $900 million in 2025, a 63% increase, with Q4 revenue hitting a record $279 million, nearly double the previous year [8][9] - OSB handle grew by 16% for the full year and 3% in Q4, attributed to disciplined acquisition strategies [8][10] - The OSB segment achieved a positive contribution of over $200 million for the first time in 2025 [9] Financial Metrics and Cash Returns - BetMGM distributed $270 million to its parent companies in December 2025, exceeding prior guidance [12] - The company ended 2025 with over $100 million in unrestricted cash and a $150 million credit line for liquidity [12] - Starting in 2026, BetMGM will incur "parent fees" of approximately 15-20% of adjusted EBITDA, which will be recorded as an operating expense but added back for adjusted EBITDA reporting [5][13] Market Dynamics and Strategic Initiatives - Management highlighted the importance of omni-channel strategies, particularly in Nevada, where combined digital and retail sports handle increased by 26% and net revenue rose by 65% year-over-year [11] - The company is focusing on fewer, higher-value "premium mass" players to improve unit economics in its sports strategy [8] - BetMGM's content library has expanded significantly, now including over 7,000 titles, with exclusive releases contributing to its competitive edge [7]

BetMGM Fiscal Year and Fourth Quarter 2025 Financial Update Summary Company Overview - **Company**: BetMGM - **Fiscal Year**: 2025 - **Key Executives**: Adam Greenblatt (CEO), Gary Deutsch (CFO) Key Financial Highlights - **Net Revenue**: $2.8 billion, up 33% year-on-year [4] - **Q4 Net Revenue**: $780 million, up 39% year-on-year [4] - **EBITDA**: $220 million for the full year, up nearly $500 million year-on-year [6] - **Q4 EBITDA**: $71 million [6] - **Cash Distribution to Parents**: $270 million, exceeding guidance of $200 million [6][31] Business Segments Performance iGaming - **Revenue Growth**: 24% year-on-year, with Q4 revenue up 18% [5][10] - **Contribution**: Over $500 million [5] - **Player Engagement**: Average monthly actives increased by 24%, with players engaging for 14% more days [11] - **Game Library**: Over 7,000 titles, adding 1,500 titles since last year [12] Online Sports Betting (OSB) - **Revenue Growth**: 63% year-on-year, with Q4 revenue reaching $279 million, nearly double from the previous year [14][15] - **Contribution**: Over $200 million [15] - **Player Metrics**: Active player days increased by 6%, with a 12% increase in average bets placed [15] - **NGR per Active Player**: Increased by 77% year-on-year [27] Omni-Channel Strategy - **Nevada Performance**: Combined digital and retail sports handle grew 26% year-on-year, with net revenue growth of 65% [19] - **Digital Integration**: Seamless experience for players transitioning between states [20][22] - **Live Dealer Growth**: Fastest-growing live dealer business in the U.S. [13] Strategic Initiatives - **Marketing Campaign**: "Make It Legendary" campaign launched, contributing to increased player engagement [5] - **New Market Launches**: Online sports launched in Missouri, marking the 30th jurisdiction of legal operations [5] - **Future Plans**: Anticipated launch of iGaming and OSB in Alberta in 2026 [8] 2026 Outlook - **Revenue Guidance**: Expected net revenue of $3.1 billion to $3.2 billion [8] - **Adjusted EBITDA Guidance**: Projected range of $300 million to $350 million [8] - **Parent Fees**: Introduction of parent fees tied to joint venture agreement, expected to be 15%-20% of adjusted EBITDA [9][36] Market Dynamics and Risks - **Regulatory Concerns**: Ongoing discussions regarding prediction markets and their impact on the regulated gaming environment [40][41] - **Competitive Landscape**: Focus on expanding iGaming states as a key growth driver [74] Additional Insights - **Player Retention**: Improved player management through real-time integration with MGM's loyalty program [60] - **Future Growth Potential**: Opportunities to double the size of the digital business in Nevada [50] This summary encapsulates the key points from BetMGM's fiscal year and fourth quarter 2025 financial update, highlighting the company's strong performance, strategic initiatives, and outlook for future growth.

Core Insights - Longleaf Partners Fund reported a return of 3.35% in Q4 2025, outperforming the S&P 500's 2.66% but underperforming the Russell 1000 Value Index's 3.81% return, indicating a challenging year without standout performers [1] - The firm emphasizes strengthening portfolio outcomes over chasing short-term winners, suggesting a strategy focused on real companies during periods of excessive speculation [1] Company Highlights - IAC Inc. (NASDAQ:IAC) is highlighted as a leading media and internet company, with a one-month return of -3.167% and a 52-week gain of 13.37%, closing at $39.51 per share with a market capitalization of $3.167 billion on January 16, 2026 [2] - IAC's strategy includes disposing of all assets except for People Inc. and a 25% stake in MGM Resorts, with plans for share repurchase and increasing its stake in MGM to address valuation disconnects [3] - The spinoff of Angi, a home services marketplace, was a significant move for IAC, with the firm purchasing more shares post-spin at a depressed price, indicating confidence in Angi's turnaround [3] Industry Context - MGM Resorts faced a weaker performance in Las Vegas in 2025 due to tough comparisons from previous years, but strong results from BetMGM and regional properties helped stabilize the business [3] - The market narrative suggests that Las Vegas has peaked, but both IAC and MGM believe that the unique appeal of Las Vegas cannot be replicated, positioning MGM as a market leader [3] - MGM's management has made strategic corrections, including selling lower-quality properties at higher multiples and withdrawing from a New York City casino bid, which has allowed for significant share repurchases over the past five years [3]

Core Viewpoint - The article discusses the potential for real estate investment trusts (REITs) to attract investors as interest rates decline, comparing two specific REITs: Realty Income and Vici Properties, to determine which is a better investment for the future [1][2]. Group 1: Overview of Realty Income - Realty Income owns over 15,500 commercial properties primarily leased to recession-resistant retailers, maintaining an occupancy rate of 98.7% in 2024 [4]. - The company has a history of paying monthly dividends and has raised its payout 132 times since its IPO [4]. - Realty's adjusted funds from operations (AFFO) per share grew at a compound annual growth rate (CAGR) of 5% from 2019 to 2024, with expectations of a slight increase in AFFO for 2025 [11][12]. Group 2: Overview of Vici Properties - Vici Properties owns 93 casinos and entertainment properties, focusing on long-term leases with major tenants like Caesar's Entertainment and MGM Resorts, achieving a perfect occupancy rate of 100% since its IPO [6][7]. - The company has raised its dividend annually for seven consecutive years and expects its AFFO per share to rise by 4% to 5% in the near future [7][13]. - Vici's AFFO per share grew at a CAGR of 9% from 2019 to 2024, indicating strong performance despite macroeconomic challenges [13]. Group 3: Comparative Analysis - Both Realty and Vici are triple net lease REITs, requiring them to distribute at least 90% of their taxable income as dividends [3]. - Vici is considered a better investment due to its stronger AFFO growth, perfect occupancy rates, lower valuation, and higher dividends compared to Realty [15]. - As interest rates decline, both companies are expected to benefit from cheaper expansion opportunities and milder macroeconomic headwinds for their tenants [14].

Core Viewpoint - Wynn Resorts is a significant player in the luxury casino and resort industry, with operations in Las Vegas and Macau, and is facing competition from major operators like Las Vegas Sands and MGM Resorts [1] Financial Performance - Wynn is set to release its quarterly earnings on November 6, 2025, with an estimated earnings per share (EPS) of $1.09, reflecting a 21.1% increase from the 90 cents reported in the same quarter last year [2][6] - Projected revenue for the quarter is approximately $1.77 billion, indicating a 4.3% increase from the previous year's quarter, driven by strong gaming volumes in Macau [3][6] Market Expectations - The Zacks Consensus Estimate aligns with the EPS projection, indicating market anticipation of improved financial performance [2] - Over the past four quarters, Wynn has exceeded the Zacks Consensus Estimate once and missed it three times, with an average surprise of 11.5%, suggesting potential for both positive surprises and risks of underperformance [4] Financial Metrics - Wynn's price-to-earnings (P/E) ratio is approximately 33.75, and the price-to-sales ratio is about 1.87, reflecting the market's valuation of the company relative to its earnings and revenue [5][6] - The enterprise value to sales ratio is roughly 3.33, and the enterprise value to operating cash flow ratio is approximately 17.89, providing further insight into the company's financial standing [5]

Summary of Entain Q3 2025 Financial Update Company Overview - **Company**: Entain - **Segment**: Online Sports Betting (OSB) and iGaming Key Financial Highlights - **Cash Distribution**: BetMGM will return at least $200 million to parent companies by year-end [2][12] - **Revenue Guidance**: Upgraded full-year revenue guidance to at least $2.75 billion, up from $2.7 billion [2][11] - **EBITDA Guidance**: Expected EBITDA of approximately $200 million, increased from at least $150 million [2][11] - **Q3 Performance**: - Net revenue of $667 million, a 23% year-on-year growth [2] - Year-to-date revenue up 31% with EBITDA at $150 million [3] Online Sports Betting (OSB) Insights - **Q3 OSB Revenue**: $202 million, a 36% increase from Q3 2024 [3] - **Player Acquisition**: Focus on acquiring and reactivating players, particularly in premium segments [4] - **Monthly Active Users**: Slight decrease year-on-year, but improved payback economics observed [4] - **Handle Growth**: Up 13% with NGR margin expanding by 110 basis points [4] iGaming Performance - **Q3 iGaming Revenue**: $128 million, a 21% increase [7] - **Player Metrics**: Active players up 21% despite no new market launches since 2022 [8] - **Content Offerings**: New exclusive content and improvements in player management driving growth [8] Product Enhancements - **App Upgrades**: Significant improvements in app speed, features, and stability ahead of the NFL season [5][6] - **New Features**: Launched live Same Game Parlays (SGPs) and enhanced rewards dashboard [6] - **Brand Campaign**: "Make It Legendary" campaign featuring Jon Hamm and Derek Jeter [6] Market Dynamics and Regulatory Environment - **Prediction Markets**: No significant impact on OSB from prediction markets; regulators maintain a clear stance against them [13][14] - **Regulatory Compliance**: Commitment to responsible gaming and compliance with state regulations [13][14] Future Outlook - **Q4 Expectations**: Strong momentum expected to continue, with new online sports launch in Missouri planned for December [10] - **Long-term Growth**: Anticipation of further iGaming state expansions and improved player acquisition strategies [50][51] Additional Insights - **Cash Management**: Targeting a minimum unrestricted cash balance of $100 million, with plans for quarterly distributions of excess cash [12][30] - **Cost Management**: Focus on operational efficiencies and timing of expenses to enhance profitability [42][43] Conclusion - **Overall Health**: The business remains robust with strong underlying metrics and a positive outlook for the remainder of 2025 and into 2026 [14][91]

Casino Industry - Casino stocks are experiencing a decline, with Melco down by 6%, MGM Resorts down by 2%, and Las Vegas Sands and Wynn down more than 5% [1] - A significant typhoon is approaching the Philippines, prompting concerns in Macau, which recently faced another storm that negatively impacted growth and gross gaming revenue [2][3] - Analysts had estimated a 12% to 13% increase in gaming revenue for September compared to last year, but actual growth was only 6% [2][3] - The upcoming Golden Week is critical for casinos, and there are worries that the typhoon may disrupt visitor numbers during this important period [3] Online Betting Industry - Online betting stocks are seeing mixed performance, with Flutter up nearly 3% and DraftKings up 2.5% [5] - The week has been challenging for sports betting stocks due to competition from Koshi, which has launched parlay products traditionally dominated by licensed sportsbooks [5] - A federal judge in Nevada ruled that Crypto.com cannot continue offering sports trades under its prediction market platform, which may impact competition dynamics in the online betting space [6]

Summary of BetMGM Second Quarter Business Update Call Company Overview - **Company**: BetMGM - **Industry**: Online Gaming and Sports Betting Key Financial Performance - **Second Quarter Revenue**: $692 million, up 36% year-over-year [3] - **First Half Revenue**: $1.349 billion, up 35% year-over-year [3] - **EBITDA for First Half**: $109 million, with $86 million in the second quarter [3][26] - **iGaming Growth**: 28% year-over-year in the first half, with a strong player acquisition strategy [4] - **Online Sports Betting (OSB) Growth**: 61% year-over-year in the first half [5][10] Strategic Insights - **Increased Guidance**: Full-year net revenue guidance upgraded to at least $2.7 billion, representing at least 28% growth year-over-year [5][28] - **EBITDA Guidance**: Upgraded to at least $150 million, a year-on-year improvement of nearly $400 million [5][30] - **Player Engagement**: Monthly active players grew by 38%, with players engaging 34% more days each month [7][8] Marketing and Player Management - **Efficient Marketing Spend**: Marketing efficiency improved, leading to a 66% flow-through of incremental revenue growth [4][31] - **Player Retention**: Enhanced player management strategies have improved retention and engagement metrics [12][13] - **Omnichannel Strategy**: Leveraging MGM Resorts' customer base to enhance player acquisition and retention [16][17] Product Development and Innovations - **New Game Launches**: Continued investment in exclusive content and partnerships, including new titles from popular franchises [8][9] - **App Improvements**: Significant enhancements in app speed and user experience, with a 40% improvement in app performance [71] Market Dynamics and Future Outlook - **Tax Impacts**: Anticipated tax increases in states like New Jersey and Illinois, with strategies in place to mitigate impacts [30][61] - **Legislative Environment**: Increased momentum for iGaming legislation, with expectations for more states to legalize in the future [89] - **Competitive Landscape**: Monitoring adjacent markets and potential risks from unregulated gaming activities [44][45] Conclusion - **Overall Health**: The business is performing strongly, with sustainable and profitable growth demonstrated through improved EBITDA and revenue metrics [34] - **Future Confidence**: High confidence in achieving $500 million EBITDA in the medium term, supported by operational efficiencies and market expansion [32][34]

These two real estate investment trusts will let you sleep well at night. Over time, dividends have become a smaller and smaller part of the stock market's total return, with the S&P 500 boasting an average yield of just 1.22% today, compared to 7.44% in 1950. That said, some companies still offer fat, consistently growing payouts, just like the good old days. Let's explore some reasons why Realty Income (O -1.76%) and Vici Properties (VICI -2.58%) could make fantastic long-term picks. Realty Income Corpora ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA guidance of $330 million to $350 million for the full year, with a trailing basis of $309 million [40][41] - Free cash flow conversion remains strong, with a minor amount of capital expenditures and working capital [41] - The company has a net credit facility of $1.2 billion to $1.4 billion and aims to deleverage below four times leverage by year-end [41] Business Line Data and Key Metrics Changes - Dotdash Meredith is the number one digital and print publisher in America, with over $1.8 billion in majority digital revenue [23] - The company has seen consistent digital revenue growth, reporting a 7% increase in the first quarter and guiding for 7% to 9% growth for Q2 [39][40] - Care.com has flat revenue over the last few years, but the company expects improvements with a new management team and better marketing strategies [47] Market Data and Key Metrics Changes - The company noted strength in premium direct advertising revenue, particularly in health and beauty sectors, while experiencing weakness in food and beverage and parts of retail [60] - Programmatic advertising prices have stabilized after initially rising, indicating a shift in market dynamics [60] - MGM Resorts is viewed as undervalued, trading at about 3.3 times the current value of its properties, with significant upside potential [44] Company Strategy and Development Direction - The company is focused on capital allocation, including stock buybacks and strategic acquisitions, while also considering opportunistic divestitures [18][54] - Management changes have been made to enhance execution and focus on free cash flow [15][16] - The company aims to unlock the perceived value of its private assets and reduce the discount at which its equity trades [13][14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong performance in direct premium advertising and a solid position heading into the latter part of the year [62] - The company anticipates some softness in Q2 and Q3 but expects relative strength in Q4, with no significant recession predicted [56] - Management highlighted the importance of resolving tariff issues to improve market conditions [62] Other Important Information - The company has a strong cash position with $900 million available at the holding company level [13] - The integration challenges faced by Dotdash Meredith have been addressed, leading to improved performance [10] - The company is actively exploring M&A opportunities across various stages and sectors, particularly in leisure, entertainment, and media [21] Q&A Session Summary Question: Can you walk through the macro environment regarding tariffs? - Management noted that there was strength in March, but volatility has since increased, with premium direct advertising remaining solid despite some weakness in other sectors [59][60] Question: Is there a path for IAC to take a controlling stake in Turo? - Management indicated that taking a controlling stake is not a priority, focusing instead on executing current opportunities [63] Question: Are there discussions with other large language model developers? - Management confirmed ongoing discussions with various developers, with OpenAI being the most advanced partner [64][65]