Entain shares plummet as Ladbrokes owner’s income takes hit
- The company said it anticipates online gaming net revenue in the third quarter to decline
- It is expected to be a “high single-digit percentage” on a pro forma basis.
Entain shares plummeted after the company warned that revenue will be weaker than expected this quarter amid tighter regulatory hurdles and slower trading.
FTSE 100 owner Ladbrokes expects a ‘single-digit percentage’ decline in online gaming net revenue in the third quarter on a pro forma basis, it told shareholders on Monday.
The Gibraltar-based company also expects the group’s full-year online gaming revenue to decline by a “low single-digit percentage” on a pro forma basis.
The FTSE 100 gaming giant revealed that online gaming net revenue for the third quarter and full year was expected to fall.
hold shares fell 12.05 percent to 928.80 pence in early afternoon trading
The company had previously predicted annual growth would be in the low to mid-single digits.
Jette Nygaard-Andersen, CEO of Entain, said: “We continue to see good underlying growth in our online business and reiterate our EBITDA guidance for the year despite lower-than-expected revenue growth in the third quarter and the rollout of industry-leading solutions. Safer measures for the game.
“We continue to attract more customers than ever to enjoy our products and services.”
Last week, data revealed that the percentage of online gamblers seeking help for slots-related problems has almost doubled in the last five years.
Of those who disclosed difficulties with online gambling to the National Gambling Helpline last year, 60 percent cited online slots as one of the main activities they had problems with, compared to 34 percent in 2018-19, according to data from the service operator. Care of the game.
The findings come as the government consults on introducing maximum betting limits for online slot games.
About 73 percent of the 5,660 people who called the helpline last year said they had had problems with online gambling.
The focus on problem gambling comes as countries around the world, including the UK, impose stricter controls on the industry to protect consumers.
The British government recently unveiled long-awaited plans to crack down on problem gambling with proposals that would include new limits on online betting, greater affordability checks for customers and a new statutory tax on betting firms to fund research, education and treatment of problem gamblers. .
Nygaard-Andersen added: “We have made significant changes to the group over the last three years. Our focus now is on accelerating the actions we are taking to drive sustainable organic growth, expand our margins, capitalize on the US opportunity and generate long-term returns for our shareholders.
“We remain confident in our ability to take advantage of the enormous opportunities ahead and look forward to sharing more details about the changes we are making alongside our third quarter business update in November.”
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