Entain Reports 6% Rise in Q3 Net Gaming Revenue, Reaffirms Full-Year Outlook
Gambling industry giant Entain has announced a 6% increase in its Q3 Net Gaming Revenue (NGR) on a constant currency basis, reiterating its full-year financial guidance. This growth comes despite ongoing regulatory changes impacting its online sector, a challenge that saw online NGR decline by 1% in the third quarter.
The overall positive performance was primarily fueled by a robust rebound in Entain’s retail operations, which experienced a significant 16% rise in NGR. This strong showing from its physical betting shops helped offset the dip in the online segment. The company continues to project a full-year EBITDA between £1 billion and £1.05 billion.
Online Performance Navigates Regulatory Headwinds
The online division faced several hurdles during Q3. Regulatory shifts in key markets, including the UK, Germany, the Netherlands, and Australia, contributed to the 1% dip in online NGR. Notably, stricter affordability checks in the UK market were cited as a significant factor. Furthermore, temporary market closures, such as in the Netherlands, and a general slowdown in market conditions also played a role.
Entain’s CEO, Jette Nygaard-Andersen, acknowledged the current pressures but expressed confidence in the company’s long-term strategy. She emphasized Entain’s commitment to player protection and sustainability. The company anticipates an improved performance in its online division for Q4 and throughout the 2024 financial year, as it adapts to the evolving regulatory landscape.
BetMGM Continues Strong Growth Trajectory
A significant highlight for Entain was the continued exceptional performance of its US joint venture, BetMGM. The venture reported a substantial 34% increase in Gross Gaming Revenue (GGR) for Q3. BetMGM is on track to achieve profitability in the second half of 2023, a key milestone for the rapidly expanding operation.
BetMGM has successfully maintained its strong market position across the US. It commands an estimated 17% market share in the sports betting and iGaming sectors within the markets where it operates. This robust performance underscores the strategic importance of the US market to Entain’s global growth ambitions.
Diverse Regional Contributions to Entain Q3 Net Gaming Revenue
Looking at regional specifics, Entain’s operations presented a mixed picture. In the UK & Ireland, online NGR saw an 8% decrease, but this was counterbalanced by a 14% growth in retail NGR. Europe experienced a 1% decline in online NGR, yet its retail sector surged by 18%. The Rest of World segment demonstrated resilience, with online NGR increasing by 11%.
The company remains focused on driving sustainable growth across all its divisions. Its reiterated full-year guidance reflects a belief in its diversified portfolio and strategic initiatives. Entain is committed to navigating regulatory challenges while capitalizing on growth opportunities, particularly in established retail markets and the expanding US online landscape.
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