Global sports betting and gaming powerhouse Entain plc (LSE: ENT) delivered a better-than-expected first quarter for 2025.
Strong online growth and solid contributions from BetMGM helped the group maintain its positive momentum.
Excellent Online Growth
For the three months ending March 31, the FTSE100 company that posted stable 2024 financial results recorded a 9% year-over-year rise in total Group Net Gaming Revenue (NGR), or 11% on a constant currency basis.
The company saw impressive gains across its online operations, with overall online NGR, including the U.S., climbing 12% or 15% on a constant currency basis.
Outside of the U.S., online revenue was up 6%, or 10% on a constant currency basis, beating internal expectations thanks to strong UK volumes and favorable outcomes in sports betting.
UK & Ireland online performance was a standout, surging 23% on a constant currency basis. Brazil, another key growth market, posted a 31% jump in NGR, aligning with forecasts.
Meanwhile, BetMGM exceeded expectations, with NGR up 34% year-on-year on a constant currency basis, and is on track to achieve EBITDA profitability in 2025.
Modest Retail Performance
Retail performance was more modest, up 2%, with softer UK gaming activity balanced by better-than-expected sports margins.
International markets overall grew 5%, with strong showings in Croatia and the CEE region, while Australia saw an 8% decline due to gambler-friendly sports results.
Looking ahead, Entain is sticking with its guidance of mid-single-digit online NGR growth for 2025 while remaining confident in hitting market expectations for EBITDA.
BetMGM is also in good shape, targeting $2.4–$2.5 billion in revenue for the year.
Stella David Appointed Permanent CEO
Meanwhile, Stella David has officially been named the permanent chief executive officer of the UK-based gambling giant.
David, who has been acting as interim chief since earlier this year, will step into the role full-time with immediate effect.
William Grant & Sons’ former CEO will replace Gavin Isaacs, who chose to step down as CEO two months ago.
A board member since 2021, she brings continuity and experience to the top job at a time when the company is pushing forward with its strategic goals.
Commenting on the positive Q1 results, David described the start of the year as “strong”.
The “accomplished and commercial business leader with a long track record of success across multiple industries”, as described by interim chair Pierre Bouchut, added that their improved operational execution helped the company “exit 2024 with clear momentum, which has continued in Q1.”
David, who has been playing a “pivotal role in shaping, implementing and executing the ongoing delivery of Entain’s strategy”, further emphasized the company was “in the early stages” of their “journey of improvement” while “driving ahead at pace.”
“We are confident that our current momentum and underlying growth will deliver quality and sustainable earnings with a clear pathway to generating over £0.5 billion of annual cash flow in the medium term,” the new permanent CEO added.
Discussing her appointment, David expressed excitement for being chosen to lead the business “going forward” as CEO.