Entain (LSE: ENT) reported steady first-quarter figures on Wednesday, with growth in its overall net gaming revenue tempered by declines in its UK & Ireland operations and customer-friendly bookmaker margins in the US.
The FTSE 100 gambling firm, owner of Ladbrokes and Coral, saw a 3% year-on-year increase in total net gaming revenue at constant currency rates, or 6% on a reported basis including its 50% share of the BetMGM joint venture.
However, Entain highlighted that its UK & Ireland net gaming revenue fell 7% compared to Q1 2023, citing the “effects of regulatory implementation” in its home markets. The company expressed confidence that operational improvements and a “levelling of the UK regulatory landscape” would position its brands for growth in 2025.
Across the Atlantic, BetMGM’s net gaming revenue rose 2% at constant currency but dipped 2% on a reported basis. Entain attributed this to strong iGaming performance being “offset by customer-friendly win margins across online and retail sportsbooks” during major US sporting events like the Super Bowl and NCAA’s March Madness.
The company estimated that adjusting for the sports margin impact would have resulted in high single-digit positive net gaming revenue growth for BetMGM in Q1.
Entain’s shares gained 1.8% in morning trading following the quarterly update.
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