Entain First-Quarter Net Revenue Climbs off Success of BetMGM

Article by : Erik Gibbs Apr 18, 2024

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Entain plc, the global sports betting and gaming group, has reported a 6% increase in total net gaming revenue (NGR) for the first quarter of the year on a constant currency basis. This growth is primarily attributed to the performance of its BetMGM joint venture, which continues to make significant strides in the US market.

Despite a challenging environment, Entain’s online NGR, excluding the US, saw a slight decline of 2%, reflecting the competitive and regulatory pressures in the global online gaming sector.

In the UK and Ireland, the NGR was down by 7%, with the online and retail segments experiencing a 9% and 6% drop, respectively. As interim CEO Stella David noted, these figures are largely due to the ongoing regulatory changes that have introduced more complexity into customer journeys.

However, CFO Rob Wood remains optimistic about the prospects for growth by the end of the year, buoyed by the anticipated positive impact of regulatory reforms and updates to the retail shop gaming cabinets.

The departure of former CEO Jette Nygaard-Andersen has led the company to actively seek a new permanent CEO to guide Entain through its next phase of growth.

Meanwhile, BetMGM has shown a resilient performance in the US with a 2% increase in NGR and maintaining a strong 14% market share in sports betting and iGaming.

The joint venture is set to enhance its offering through the integration of new betting options following Entain’s acquisition of Angstrom Sports. This includes innovative parlay capabilities for Major League Baseball, with expansions planned for professional basketball and football.

Furthermore, BetMGM is entering a loyalty points partnership with Marriott Bonvoy and will benefit from the expansion of its multistate login system to Nevada, enhancing customer experience and loyalty.

Notably, Entain’s Central and Eastern European unit reported an 11% pro forma NGR increase, signaling robust growth in these markets. The international unit, encompassing operations in Australia, Italy, Brazil, the Netherlands, New Zealand, Georgia, and Germany, also recorded an 8% rise in NGR, showcasing Entain’s diversified and resilient global presence.

As Entain continues to evolve with the global gaming market, its focus on strategic growth initiatives, customer experience enhancements and leadership stability will be crucial in maintaining its trajectory in the face of regulatory and competitive challenges.