Looking ahead to a busy sporting schedule and continued international momentum, Entain has projected a full year revenue of $1.3bn, following progress in the third quarter.
Issuing its Q3 trading update to investors this morning, the FTSE100 group revealed that NGR had risen by 2% from July to September, driven by 6% year-on-year uptick in customers to reach a ‘record level’.
A vertical breakdown saw Entain’s online business experience ‘positive underlying momentum’ with 1% growth, whilst the firm’s retail holdings such as Ladbrokes and Coral continued to regain ground lost during COVID via a 10% increase – standing at 8% above pre-pandemic figures.
The Netherlands has continued to provide some drag to the group’s ambitions, it seems, due to Entain still having no presence in the country as a result of the relicensing process under the KOA Act.
If the Dutch market was not factored in, Entain’s Q3 revenue would have grown by 4%. However, the group’s acquisition of BetCity is expected for finalisation in Q4, re-securing the group’s foothold in the Netherlands, as is the takeover of Croatian firm SuperSport and launch of the Central European focused Entain CCE division.
“Our business continues to perform well with good underlying momentum across the group, including in BetMGM,” said Entain CEO Jette Nygaard-Andersen.
“This illustrates the effectiveness of our growth strategy, the unique capabilities of the Entain platform, and the underlying strength of our diversified global business.
“I am delighted that we have welcomed even more customers to our brands across the world. This is a testament to our relentless focus on the customer, as well as the quality of our products, content and talented people.”
In transatlantic business, the BetMGM joint venture has secured 25% market share in all but one state in which it maintains a presence – that state being the booming and competitive New York market.
The brand has also gained 31% market share in US igaming, whilst in sports betting the NFL 2022/23 NFL season has driven Q3 NGR of $400m, a year-on-year growth rate of 90%.
With the NFL continuing to yield positive results in the US, Entain expects the World Cup to further add fuel to its ‘healthy momentum’ going into and concluding Q4, projecting EBITDA growth of 5-10% to £925m-£975m.
Reflecting on year-to-date performance, Entain’s total online revenue rose by 5% – with sports wagering increasing by 4% and igaming by 6% – although this was dwarfed by retail at 102%. All in all, the group’s revenue rose by 12% in the nine months ending 30 September.
“In the US, BetMGM continues to be the clear leader in the igaming market, and the successful start to the NFL season also highlights the strength of our growing US sports betting offer,” Nygaard-Andersen continued.
“We have healthy momentum across the business and look forward to a strong finish to the year which includes the World Cup. Looking ahead, we remain vigilant of the economic backdrop.
“However, our diversified revenue base and robust business model enable us to remain confident in our ability to deliver on our growth and sustainability strategy.”