Entain has reported its performance for the three months to the end of September was “ahead of expectations” as total net gaming revenue (NGR) increased 10% year on year (YoY) on a constant currency (cc) basis.
Excluding the operator’s 50% stake in BetMGM, total NGR rose 8% YoY in cc, while online NGR was up 12%.
Bosses noted all key markets delivered growth in the reporting period, with the UK and Ireland returning to YoY growth “sooner than expected”.
Staying in the UK and Ireland, total NGR ticked up 2%; a 6% rise in online NGR for the Ladbrokes Coral parent company offset a 2% dip in retail.
Entain said the online NGR jump was reflective of the lapping of regulatory measures the operator had put in place, as well as enhancements across product, offering and the customer journey.
Online growth in the UK and Ireland was driven by igaming – NGR for the vertical up 8% as sports betting was flat YoY.
In the group’s international division, online NGR rose 10% in cc, with retail remaining flat as the Brazilian success story continued.
In fact, Brazilian NGR surged 48% YoY as the market, where Entain operates Sportingbet, continues to “outperform expectations”.
As part of Entain’s H1 earnings presentation, management were effusive in their praise for Brazil, highlighting the soon-to-be-regulated market as a key battleground for the business.
In Entain’s Central and Eastern Europe (CEE) division, which includes Poland’s STS and Croatia’s SuperSport, NGR climbed 11%, with online alone rising 13% and retail up 2%.
Entain’s BetMGM JV has also reported an 18% YoY leap in NGR driven by product enhancements for US and Ontario-facing brand.
Angstrom Sports-powered sports betting markets across MLB, NFL, NBA and NCAAF have resulted in an increase in parlay bet mix and GGR hold, according to Entain.
Q3 also marked record igaming revenue for BetMGM, with first-time depositors up by more than 70% and “strong online sports to gaming cross-sell in NFL season to date”.
Entain noted BetMGM had “stabilised” its market share in the US and Ontario at 15%, up from the 13% reported in H1.
Within that, BetMGM’s Q3 online sports betting market share was pegged at 8%, while igaming was 22%.
Away from operational performance, Entain also laid out its progress against strategic priorities for growth.
The operator pointed to sustained gains product and tech, namely the addition of Angstrom Sports-powered markets and the rollout of the ‘single account, single wallet’ feature for BetMGM.
Additionally, Entain has confirmed it will not be pursuing a sale of its Georgia-facing Crystalbet brand after failing to find a buyer willing to pay the right price.
Crystalbet had been deemed by the Capital Allocation Committee as “non-core”, with Entain looking to sell the operator.
However, management said that “third party interest did not exceed its value to Entain as an attractive part of our global portfolio” and instead will retain the brand.
In terms of outlook for the remainder of the year, bosses said the strong Q3 results had given “increased confidence” for the rest of 2024.
As a result, full-year 2024 online pro forma NGR is expected to be mid single-digit positive, and EBITDA should land in the top end of the £1.04bn to £1.09bn guidance.
Entain CEO Gavin Isaacs, who joined the business at the start of September, said his first few weeks in the role had been positive as he reflected on the group’s Q3 performance.
He said: “My first few weeks as CEO of Entain have reaffirmed my view that this is a very good business operating in a highly attractive global industry.
“Entain has great brands, an enviably diverse global portfolio and is bursting with talent, ambition and opportunities. Entain is already on a path of strategic and operational improvement, with the strong Q3 performance demonstrating the progress achieved so far.
“We are at the beginning of the journey and I’m looking forward to accelerating our progress, leading the business in our next growth chapter and capturing the many exciting opportunities ahead.”
The market responded positively to the financial performance, sending Entain shares up 3% to 735p in early trading, although the stock is down 4% on the week following news that the UK government is considering a £3bn tax raid on the industry by hiking remote gaming duty.
The post Entain Q3 NGR up 8% as Brazil and BetMGM bolster performance first appeared on EGR Intel.