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Entain reports 7% rise in Q3 net gaming revenue, Shares dip 1.7%

Entain (LSE: ENT), the sports betting and gambling parent company to brands like bwin, Coral, and Ladbrokes, revealed a 7% year-on-year increase in its net gaming revenue for the third quarter of 2023. Despite the …

Entain (LSE: ENT), the sports betting and gambling parent company to brands like bwin, Coral, and Ladbrokes, revealed a 7% year-on-year increase in its net gaming revenue for the third quarter of 2023. Despite the positive news, Entain’s shares dipped 1.7%, falling to 924.30 pence each at the London open.

The company’s financial report unveiled that performance in the retail sector improved by 4%, but it fell by 4% on a proforma basis. Despite this, Entain remains optimistic about its financial outlook.

For the third quarter, Entain expects earnings before interest, tax, depreciation, and amortisation (Ebitda) between £1.00 billion and £1.05 billion. Notably, the company mentioned a £45 million impact on sports margins, indicating challenges in the sports betting domain.

Looking ahead to 2024, Entain anticipates online net gaming revenue growth in the low single digits and an online Ebitda margin between 24% and 25%. These projections highlight the company’s cautious yet steady approach to future growth.

Jette Nygaard-Andersen, Entain’s Chief Executive, stated, “We have a clear plan to focus our portfolio for 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.”

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