Online gaming and sports betting group Entain has posted its report for the third quarter of the year. During the period, net gaming revenue rose 2%, but remained flat on a constant-currency basis. The company said the performance was “in line with expectations,” while it now hopes the soccer World Cup starting next month will help improve its fourth-quarter performance.
The company noted strong momentum into the NFL season for BetMGM, its joint venture with MGM Resort. The brand continues to “perform strongly” with a 25% market share where it operates excluding New York, according to the group. The NFL season start drove Q3 net gaming revenue of just over $400 million, up 90% YoY, with same-state revenues up 50% from the same period in 2021.
“Our business continues to perform well with good underlying momentum across the group, including in BetMGM. This illustrates the effectiveness of our growth strategy, the unique capabilities of the Entain platform, and the underlying strength of our diversified global business,” commented Jette Nygaard-Andersen, Entain’s CEO.
“I am delighted that we have welcomed even more customers to our brands across the world. This is a testament to our relentless focus on the customer, as well as the quality of our products, content and talented people,” Nygaard-Andersen added.
Other highlights of the quarter include a record level of active customers in Q3, 6% up YoY. As for its full-year outlook, Entain describes a “healthy momentum into the year-end” with online expected to grow year on year in Q4, benefitting from easing of prior year comparators and the World Cup, among other factors. Fiscal Year Group EBITDA is expected to be in line with previous guidance of £925 million – £975 million ($1 billion – $1.1 billion), representing growth of 5-10% vs the prior year.
“In the US, BetMGM continues to be the clear leader in the iGaming market, and the successful start to the NFL season also highlights the strength of our growing US sports betting offer,” commented Nygaard-Andersen. “We have healthy momentum across the business and look forward to a strong finish to the year which includes the World Cup.”
“Looking ahead, we remain vigilant of the economic backdrop. However, our diversified revenue base and robust business model enable us to remain confident in our ability to deliver on our growth and sustainability strategy,” the executive further noted.
UK gambling firms, which are seeing more punters returning to retail shops and witnessing a drop in online gaming from COVID peaks, are now staring at challenges from a cost-of-living crisis as customers seek to cut non-essential spending, reports Reuters. Entain rival Rank Group also warned of continued pressure on consumer’s discretionary spending amid inflation.