The Entain Group reported strong performance in the third quarter of 2024, with total net revenue increasing by 8% and online gaming revenue by 10%, exceeding expectations. The company has updated its EBITDA guidance for the fiscal year 2024, driven by significant growth in key markets such as Brazil (48% growth in NGR) and encouraging results from BetMGM. Newly appointed CEO Gavin Issacs says the group is 'back where it should be'.
In a trading update this Thursday (17), Entain reported an 8% year-on-year increase in group revenue for the third quarter, driven by growth in its online businesses.
The 8% increase in net gaming revenue (NGR) includes Entain's 50% share in the BetMGM joint venture with MGM Resorts. Excluding US profits, revenue is still up 7% from the previous year.
Group CEO, Gavin Issacs, says his first weeks in office "reaffirmed" his ambition for the company, which achieved "stronger than expected" results, leading the company to reveal that full-year adjusted EBITDA will likely be near the upper end of the guidance range - between £1.04 million and £1.09 million.
One of the highlights for the group was the strong performance in Brazil, a market that "exceeded expectations" where Entain reported revenue was 48% ahead for the period. CFO Rob Wood said he expected this growth to slow down next year, as the regulated Brazilian market opens in January and is flooded with new competitors.
Wood noted that marketing spending for the region would increase next year, as Entain, which has already followed the regulatory steps to apply for a license, seeks to acquire new customers.
"We exceeded our expectations again in the third quarter. Online growth has once again aligned broadly with market growth. Which, of course, is where we should be. We are now delivering growth across all our key markets from Brazil, the UK, and the USA,” Wood told analysts.
CEO Gavin Issacs commented: “My first weeks as CEO of Entain reaffirmed my view that this is a very good business operating in a highly attractive global industry.”
“Entain has great brands, an enviably diverse global portfolio, and is full of talent, ambition, and opportunities. Entain is already on a path of strategic and operational improvement, with the strong performance of the third quarter demonstrating 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 capturing the many exciting opportunities we have ahead.”
As a result of a stronger than expected Q3, Entain is forecasting positive full-year results. This includes proforma online net revenue now set to be positive single-digit on a constant currency basis.
Additionally, the group's EBITDA for the fiscal year 2024 is expected to be near the upper end of the guidance range of £1.04 billion to £1.09 billion.
Source: GMB / iGB
