Entain's Reports Growth in Every Business Segment in Q3
LISTEN TO THIS ARTICLE:The gambling operator Entain has reported a 7% rise in net gaming revenue for Q3, noting growth in every business segment. In a business update from 2 November, Entain provided several financial highlights for Q3, emphasizing the growth in group revenue during the three months ending 30 September.
Entain revealed that revenue for its online sector was 9% greater than the same quarter the previous year. The increase was fueled by expansion in online gaming, which saw a 14% increase in revenue.
There was also an upsurge in the online sports betting revenue in Q3. However, the increase was modest, just 1% more than gaming. This minimal growth can somewhat be linked to a 6% drop in wagers, even though the sports margin rose by 0.5 percentage points.
In retail, revenue grew by 4%. This number encompasses retail activities in countries such as the UK, Ireland, Italy, Croatia, Poland, and New Zealand.
BetMGM Continues to Perform Well in the US
In the US, the BetMGM joint venture with MGM Resorts recorded an 8% increase in net gaming revenue. Entain reported a revenue of approximately $458m (£377/€432m) from this segment in Q3.
The success of BetMGM goes beyond revenue growth. Entain highlighted that BetMGM commands an 18% market share in areas it serves, excluding New York. Specifically, Entain highlighted that BetMGM accounted for 26% of the US market share for iGaming during Q3.
Regarding sports betting, Entain enjoyed a strong start to the NFL season in early September. They acknowledged that major investments aimed at enhancing the BetMGM customer experience have been fruitful.
Given the substantial growth of the US segment, Entain anticipates BetMGM's full-year revenue to range between $1.80bn and $2.00bn. This prediction aligns with previous projections, forecasting the segment to yield a positive EBITDA in the latter half of the year.
Planning for the Future
In regards to the future, Jette Nygaard-Andersen pointed to Entain's strategic evolution in the past three years. Efforts have been concentrated on refining earnings quality, fortifying operations, and organizing structures to bolster future expansion.
To boost this, Entain has earmarked several pivotal strategies to enhance its operational approach. These involve focusing on a market portfolio tailored for natural growth, emphasizing regions such as the US, Brazil, Central and Eastern Europe, and New Zealand.
Simultaneously, Entain aspires for lucrative expansion in primary markets such as the UK, Australia, Italy, Germany, and the Baltics. However, the company also plans to withdraw from smaller, non-essential operations.
In terms of aspirations, Entain has set its sights on achieving an online EBITDA margin of 28% by 2026 and 30% by 2028 through the rollout of Project Romer. The strategy is to streamline the organization to amplify operational leverage and realize cost savings, targeting £100m in savings by 2025.
Furthermore, Entain is refining its governance structure. This has involved the induction of four new non-executive directors, with Amanda Brown being the recent addition.
Nygaard-Andersen further remarked on the company's significant investments in responsible gambling initiatives.
We have made significant investments in responsible gambling initiatives. While these steps have impacted EBITDA, they are unquestionably the right thing to do to improve our long-term prospects. From here, we have a clear plan to focus our portfolio on organic growth, drive our market share in the US, improve our operational leverage and increase our EBITDA margins. The wide range of initiatives that are underway will cement our position as a customer-focused industry leader, enable us to achieve our strategic ambitions and deliver enhanced returns for all our stakeholders.
More Finance News
RELATED TOPICS: Finance
Latest News
Most Read
Must Read
Interviews
When Helping Others Is a Life-Long Mission - An Interview with Gordon Moody CEO, Monica Shafaq
Dec 17, 2024
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Entain's Reports Growth in Every Business Segment in Q3