Entain outperforms expectations in Q3 2024
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24 Oct 2024 •
Reading time: 2 minutes Entain plc, the global sports betting and gaming group, has delivered a stronger-than-expected performance in the third quarter of 2024 (Q3). The company reported net gaming revenue growth of 8%, moving it closer to its annual targets and raising its full-year guidance.
Strong growth in net gaming revenue in Q3
For the period 1 July to 30 September 2024, Entain delivered total group revenue (NGR) growth of 8%, with growth of 10% in constant currency. This increase was driven by strong performances in both the UK & Ireland and international markets. Notably, online revenue outside the US grew by 10%, ahead of expectations. The return to year-on-year growth in the UK & Ireland occurred faster than planned, marking a significant milestone following a series of regulatory changes in these markets.
Retail, or physical sales, however, underperformed. In the UK & Ireland, retail sales fell by 2%, while international retail remained flat.
BetMGM sees strong performance and market stabilisation
BetMGM, the US joint venture of Entain, recorded 18% growth in net gaming revenue in the third quarter compared to the same period last year. This is seen as an encouraging development, mainly due to the stabilisation of their market share. BetMGM continues to dominate the market in iGaming, with a market share of 22%, while their share of online sports betting remains at 8%.
According to CEO Gavin Isaacs, BetMGM has benefited in particular from improvements to their sports betting platform, including better betting options for parlay bets and live bets. Isaacs spoke enthusiastically about the future of BetMGM and the opportunity to grow even further in the US.
Entain raises full year guidance
Following a strong performance in Q3, Entain is now raising its guidance for the full year 2024. The company now forecasts full year EBITDA (earnings before interest, taxes, depreciation, and amortization) to be at the top end of its guidance, between £1,040 million and £1,090 million. Online NGR growth is now expected to be in the mid single figures, slightly higher than previously forecast.
Gavin Isaacs, Entain’s new CEO, who took office on 2 September 2024, said:
“My first few weeks as CEO of Entain have reinforced my belief that this is a great business. We have strong brands, a broad global portfolio and are packed with talent and ambition. The solid performance in Q3 shows we are on the right track, and I look forward to accelerating this progress further.”
Isaacs sees particular opportunities in the continued roll-out of technology and product enhancements, as well as continued strong performance by Entain in the US and other key markets.