British gambling group Entain announced an 8% year-on-year increase in group revenue for the third quarter, driven primarily by growth in its online business. The company’s latest trading update indicates that full-year adjusted EBITDA is expected to reach the upper end of its guidance, projected between £1.04 billion ($1.35 billion) and £1.09 billion.
In a detailed breakdown of regional performance, Entain reported a 2% revenue increase in the UK and Ireland, with online revenue rising by 6%. Internationally, group revenue grew by 6%, highlighted by an impressive 53% surge in Central Eastern Europe (CEE). Notably, revenue from Brazil skyrocketed by 48%, although CFO Rob Wood cautioned that growth may slow as the regulated market opens to increased competition next year.
“Entain is already on a path of strategic and operational improvement… I’m looking forward to accelerating our progress, leading the business in our next growth chapter and capturing many exciting opportunities ahead,” said CEO Gavin Isaacs.
Despite the positive overall results, the company faced challenges in its retail segment, which saw a decline of 1%. Wood noted that while most markets experienced online growth, some, including Italy, Belgium, and Poland, were down, contributing to the retail dip.
Entain’s U.S. joint venture, BetMGM, reported an 18% increase in revenue year-on-year, maintaining a 15% market share. “We’re not yet on an upward trajectory but we do have stability… holding market share is step one,” Isaacs added, emphasizing the importance of maintaining competitiveness amid rising market pressures.
Elsewhere in its report, the Isle of Man-headquartered company also said it will not pursue the sale of its Georgian brand Crystalbet following a strategic review. Isaacs said the offers they had received for the business were too low to consider selling.
Looking ahead, Entain remains optimistic about its trajectory for the full year, bolstered by the strong performance in Q3. Wood remarked: “We’ve beaten our expectations again in Q3… Online growth is back to being broadly inline with market growth, which of course is where we should be.”
Entain’s shares rose 3.6% following the update. The company is scheduled to release its full Q3 results in the coming weeks.
Original article: https://www.yogonet.com/international/noticias/2024/10/17/82216-entain-reports-strong-q3-revenue-growth-amid-online-surge
