Entain Plc cites confidence in achieving the strategic objectives of year one of its corporate reorganization, as a new leadership team takes charge of the FTSE100 gambling group.
Appointed in September, Gavin Isaacs issued his first statement as Group CEO: “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.”
Reflecting a stronger-than-expected Q3 performance and increased confidence for the remainder of the year, leadership upgraded FY2024 guidance as group EBITDA is projected to be stand at the top end of the £1,040m to £1,090m ($1,268.8 million to $1,329.8 million) guidance range.
Q3 saw Entain’s group net gaming revenues (NGR) increase by 8%, and by 7% on a pro forma basis, as period trading saw online brands exceed expectations in key markets (excluding US results).
Of strategic importance, the firm’s UK & Ireland home unit returned to growth (+2%), registering a 6% increase in online NGR, whilst retail NGR remained down by 2%.
Leadership underscored a “quicker than anticipated recovery” in home markets as “positive online year-on-year growth reflects the lapping of prior year regulatory implementation as well as product, offering and customer journey enhancements.”
Entain’s International unit (excluding the US) increased NGR by 9% on a pro forma basis, with online up 10% and retail remaining flat, registering 48% growth in Brazil.
Maintaining its growth profile, Entain CEE saw NGR growth of 11% (online +13%, retail +2%), underscoring strong results from SuperSport in Croatia.
For CEE markets, the trading update revealed that Entain will not sell its Crystalbet sportsbook brand in Georgia, an asset that had been placed under review by the Capital Allocation Committee as “third-party interest did not exceed its value.”
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%..
Of significance to Entain’s reorganization, BetMGM delivered on key Project Romer initiatives to upgrade its sportsbook wager with Angstrom capabilities across all major US pro-sports leagues, leading to enhanced parlay efficiencies and improved hold of GGR for sports wagering.
Period trading concluded with Gavin Isaacs joining Entain as Chief Executive Officer, and Stella David succeeding Barry Gibson as Chair of the Plc.
The leadership team will continue to prioritize making progress on its core product and technology roadmap by enhancing platform fundamentals, expanding localisation capabilities, and accelerating product delivery in key markets to better meet customer needs.
CEO Isaacs concluded: “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.”
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