Record online customer activity and FX push revenue up 2% at Entain in Q3

| By Robert Fletcher
Entain said it was able to perform in line with expectations during the third quarter of its financial year after a record level of active online customers helped push net gaming revenue up 2% year-on-year.

In a trading update published today (13 October), Entain revealed growth across both its online and retail operations for the three months through to 30 September.

While actual revenue was up, it was flat on a constant currency basis.

Online revenue was up 1% year-on-year, with both internet sports betting and online casino revenue having increased 1%. Entain also noted a 1% rise in online sports wagers during the period.

Turning to retail, revenue was up by 10%, while sports wagers were 4% higher. Entain said these increases were despite a reduction in the average number of shops it operated across the UK, Ireland, Italy and Belgium during the quarter, with the total down from 4,513 in Q3 of 2021 to 4,274 this year.

The group also highlighted the performance of its BetMGM joint venture with MGM Resorts International, which operates across retail and online. Here, net gaming revenue for Q3 was up 90% year-on-year at just over $400m (£361m/€412m).

Entain said BetMGM holds a 23% market share in the US states where it operates, with this area of the business on track to post more than $1.3bn in revenue for the full financial year.

“Our business continues to perform well with good underlying momentum across the group, including in BetMGM,” Entain chief executive Jette Nygaard-Andersen said. “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 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.”

Entain full-year projections

In terms of the wider group, Entain said it expects “healthy” momentum into the year-end and forecasted year-on-year growth within its online business for the full year. 

It also said group earnings before interest, tax, depreciation and amortisation will likely be in line with previous guidance of £925m to £975m, which would represent growth of between 5% and 10% on the previous year.

In addition, Entain said it expects to be licensed and operating in the Netherlands by the end of the current year. Entain halted all operations in the country last September, ahead of the launch of its regulated market in order to seek a licence to offer online gambling legally.

Entain in June this year acquired Netherlands operator BetCity for an initial consideration of €300m and a deferred contingent consideration of up to €550m, opening a route to the market.

“We have healthy momentum across the business and look forward to a strong finish to the year which includes the World Cup,” Nygaard-Andersen added. “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.”

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