Table of Contents
- Online revenue growth helps offset continued decline in retail
Jackpot: Good start for new boss Gavin Isaacs
Entain expects full-year profits to be at the high end of guidance as strong growth in online gambling continues to offset a decline in brick-and-mortar trading.
The Ladbrokes owner’s net online gaming revenue beat expectations in the three months to September 30, growing 12 percent in constant currency excluding the United States.
Entain, which has been expanding in the US through its BetMGM joint venture, saw online sales expand across all regions, with the UK and Ireland returning to growth ahead of schedule.
However, retail revenue fell 4 percent across the region, while store sales in all markets were flat year-over-year.
However, Entain told investors it now expects 2024 profits before the unpleasantness hits “towards the top” of a guidance range of £1.04bn to £1.09bn.
Chief executive Gavin Isaacs, who joined the group just over a month ago, said: ‘Entain is already on a path of strategic and operational improvement, and the strong third quarter performance demonstrates the progress made so far.
“We are at the beginning of the journey and I look forward to accelerating our progress, leading the business into our next chapter of growth and taking advantage of the many exciting opportunities ahead.”
hold shares They rose 3.3 percent in early trading to 735.8 pence.
Shares took a hit earlier this week due to reports that the Labor government is proposing a £3bn tax raid on the gambling sector.
Entain’s recent growth has been fueled by inorganic expansion, and its joint venture with MGM in the US saw net gaming revenue increase 18 percent year-over-year during the third quarter.
The group, which also owns Coral, said growth in the United States reflected “better products and greater investment in player acquisition.”
Richard Hunter, head of markets at Interactive Investor, said U.S. growth has proven to be “a tough slog” for Entain, and that “promotional investment has been something of a necessary headwind.”
He added: “Indeed, the fact that this is a lucrative and fast-growing market for suppliers has quickly led to a level of fierce competition, so the joint venture will have to continue operating to hold its own as other competitors emerge and existing players redouble their efforts. in their offers in terms of prices, promotion and presence.
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