In a trading update this Thursday (17), Entain has reported an 8% year-on-year increase in group revenue for Q3, driven by growth within its online business.
The 8% net gaming revenue (NGR) increase includes Entain’s 50% interest in the BetMGM joint venture with MGM Resorts. Excluding US earnings, revenue is still up 7% year-on-year.
Group’s CEO Gavin Issacs says his first few weeks in the role have “reaffirmed” his ambition for the company, which achieved “stronger than expected” results that led the company to reveal that full-year adjusted EBITDA is likely to be near the top end of guidance – between £1.04m and £1.09m.
One of the highlights for the group was the strong performance in Brazil, a market that “surpassed expectations” and where Entain reported that revenue was ahead by 48% in the period. CFO Rob Wood said he expected this growth to slow next year as the regulated Brazilian market opens in January and is flooded with new competition.
Wood noted marketing spend for the region would increase next year as Entain, that already followed the regulation steps to apply for a license, seeks to acquire new customers.
“We’ve beaten our expectations again in Q3. Online growth is back to being broadly in line with market growth. Which of course is where we should be. We are now delivering growth in all our core markets of Brazil, UK and US,” Wood told analysts.
CEO Gavi Issacs commented: “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."
As a result of a stronger than expected Q3, Entain is forecasting positive results for the full year. This includes online proforma net revenue now set to be mid-single-digit positive on a constant currency basis.
On top of this, FY24 group EBITDA is expected to be towards the top end of the £1.04bn to £1.09bn guidance range.
Source: GMB / iGB
