Entain’s online net gaming revenue (NGR) had a mixed performance post-summer, falling slightly below expectations. However, Q3 online NGR growth is anticipated to increase by a high single-digit percentage, albeit a decrease on a proforma basis.
Various factors led to these results, including unfavorable sporting outcomes impacting sports margins in September, ongoing regulatory challenges, and slower growth than expected in the Australian and Italian markets.
Despite these challenges, certain aspects of Entain’s performance remained positive. Recent acquisitions such as SuperSport, Retail, and BetMGM showed strong performance, with BetMGM expected to achieve positive EBITDA in the second half of 2023.
For FY2023, Entain predicts low double-digit percentage growth in group online NGR, while proforma NGR is expected to decline by a low single-digit percentage.
Despite the revenue challenges in Q3, the company maintains its FY2023 EBITDA guidance of £1bn to £1.05bn ($1.22bn to $1.28bn), thanks to operational controls.
Jette Nygaard-Andersen, CEO of Entain, acknowledged the challenges faced, particularly the slower revenue growth in Q3. However, she emphasized that the company continues to attract more customers and expects positive EBITDA from BetMGM in the second half of the year.
Entain’s focus now is on driving sustainable organic growth, expanding margins, capitalizing on the US opportunity, and delivering long-term returns for shareholders. The company remains confident in its ability to seize the vast opportunities ahead and will provide more details about its plans in the Q3 trading update in November.