Entain exceeds financial expectations for Q3 2024

Garance Limouzy October 18, 2024

The global sports betting and gaming group, Entain plc, has impressive results for the third quarter of 2024, surpassing market expectations. The company’s total Net Gaming Revenue (NGR) saw an 8 percent year-on-year increase, with a 10 percent rise in constant currency terms, driven by growth across its online operations and international markets. According to Entain, the performance was bolstered by increased engagement from key markets, including a surprising recovery in the UK & Ireland and sustained success in regions like Brazil.

BetMGM’s momentum

BetMGM, the group’s joint venture in the United States, showed noteworthy progress with an 18 percent year-on-year increase in NGR. The platform’s market share has stabilised, holding 15 percent of the overall market, including a commanding 22 percent in iGaming. BetMGM also reported record iGaming revenues for Q3, aided by sports betting features improvements, including expanded options for parlays and player prop bets.

According to Entain, this performance is a result of focused investment in player acquisition and technology improvements, such as the integration of Angstrom’s market pricing capabilities. The platform’s sports betting experience, particularly across major American leagues like the NFL and NBA, has attracted more users and boosted overall revenue.

A return to growth in UK & Ireland

The company’s online Net Gaming Revenue (excluding the US) grew by 9 percent, exceeding expectations and benefiting from both volume growth and improvements in sports margins, recovering from challenges related to regulatory changes in the UK. Entain’s UK & Ireland operations returned to year-on-year growth faster than expected. The company reported a 6 percent increase in online NGR for the region, with retail operations slightly declining by 2 percent. This growth was attributed to the company’s continued investment.

International markets and CEE expansion

The international segment performed strongly as well, recording a 9 percent increase in NGR. Brazil led the pack with an impressive 48 percent growth, demonstrating the country’s potential as a key driver of future performance. Entain’s expansion in Central and Eastern Europe (CEE) also yielded positive results, with a reported 11 percent NGR growth across the region. Croatia’s SuperSport brand, in particular, continued to excel, driving both online and retail growth, reported the company.

Outlook for FY24

Gavin Isaacs (pictured above) stepped into the role of CEO in September. He expressed confidence in the company’s future, noting that Entain is “at the beginning of an exciting journey” that will see it capitalise on the many opportunities ahead.

As a result of its strong Q3 results, Entain has upgraded its expectations for the full year. The company now anticipates mid-single-digit growth in online NGR for FY24, up from its earlier forecast of low-single-digit growth. Furthermore, Entain expects its EBITDA for the year to land towards the higher end of its guidance range of £1,040 million to £1,090 million.