Entain Plc stands by its full-year guidance for 2024 as the FTSE 100 gambling group monitors the financial updates of competitors.
This morning, Entain reiterated its confidence in achieving the upgraded guidance issued on 17 October, targeting group-wide EBITDA at the top range of £1,040m-£1,090m.
The update follows last week’s announcement by rival Flutter Entertainment, which cut its annual revenue by $390m and adjusted EBITDA by $260m due to the impact of unfavourable sports results (primarily NFL) in November and December, which affected FanDuel’s results.
FanDuel’s exposure to NFL losses prompted analysts to question the generosity of parlays and marketing promotions offered by Flutter during the busiest period of NFL coverage.
Responding to US circumstances, Entain detailed: “Despite the customer-friendly US sports results seen during Q4, particularly in October and December, BetMGM reiterates its previous FY24 EBITDA guidance of approximately -$250m.”
For the year, Entain cites that the results of BetMGM, its US joint venture with MGM Resorts, will be “consistent with 2024 as an investment year.” BetMGM is anticipated to deliver a loss of $123m for H2 trading, matching H1 results.
Of strategic importance, the latest Q3 results showed that Entain’s UK & Ireland home unit returned to growth (+2%), registering a 6% increase in online NGR, while retail NGR remained down by 2%.
The FTSE 100 has begun a corporate reorganisation under the leadership of new CEO Gavin Isaacs. Of significance to Entain’s reorganisation, BetMGM delivered on key Project Romer initiatives to upgrade its sportsbook wager with Angstrom capabilities across all major US professional sports leagues, leading to enhanced parlay efficiencies and improved hold of GGR for sports wagering.
In the US, BetMGM’s Q3 NGR showed continued acceleration, increasing by approximately 18%, driven by improved product offerings and greater investment in player acquisition. Leadership notes that US market share has stabilised at 15%, with iGaming at 22% and sports betting at 8%.
Entain Plc will publish its full-year 2024 results on Tuesday, 4 February 2025