Entain Hit by Regulatory Headwinds, Prepares for Slower Online Growth

The global gaming, sports betting and interactive entertainment company, Entain, released a new report Monday, providing an update on its current trading as well as FY 2023 guidance. The recent report included details regarding strategic actions that seek to drive shareholder value and accelerate its operational performance.

Focusing on current trading, Entain said that has seen mixed results for the online net gaming revenue (NGR) after the summer. The company explained: “Q3 Online NGR growth is now expected to be up high single-digit percent, and down high single-digit percent on a proforma basis,” highlighting drivers that included slower growth in strategic regions such as Italy, as well as Australia.

At the same time, Entain spoke about the regulatory headwinds, particularly in the UK, that have persisted longer than anticipated. Moreover, the company spoke about the extra measures related to safer gambling in the region. According to the new report, sports margins in September were impacted by unfavorable sporting results.

Despite the challenges, Entain spoke about its growth within the retail vertical and praised the strong performance of BetMGM in the US. It added that active customer growth in Q3 continues to support the company’s online expansion. Additionally, Entain confirmed that it enjoys benefits from recent acquisitions such as SuperSport’s takeover in Croatia.

“We now expect Group Online NGR for FY2023 to be up low double-digit percent with proforma NGR down low single digit percent.  We reiterate our expectations for FY2023 EBITDA to be in the range of £1.00bn-£1.05bn supported by robust operational controls,“

reads the latest update on current trading released by Entain

The Company Remains Committed to Growth

Jette Nygaard-Andersen, Entain’s CEO, spoke about the growth of the company’s online business segment and highlighted its commitment to responsible gambling. She praised the efforts related to customer acquisition, confirming that more players than ever before can benefit from Entain’s exceptional services. “BetMGM remains on track to deliver positive EBITDA in H2 and a full year NGR performance at the top end of our expectations, and we are particularly excited about the product improvements that we are rolling out over the NFL season,” added Entain’s CEO.

“We continue to see good underlying growth in our online business and are reiterating our EBITDA guidance for the year despite softer than expected revenue growth in Q3 and the ongoing roll-out of industry-leading safer gambling measures.“

Jette Nygaard-Andersen, CEO of Entain

Nygaard-Andersen continued by saying that over the last few years, the company has implemented major operational changes. According to her, Entain will now focus on strategic priorities, including expanding margins, sustainable growth and seizing opportunities in the US that can bring long-term shareholder returns. Finally, Nygaard-Andersen said that the company is well-equipped to continue growing and vowed to disclose details regarding further changes with the company’s Q3 update this November.