Today, Entain released its preliminary financial results for the first quarter, revealing a rise in reported revenue, including its 50% share in the BetMGM joint venture. When measured in constant currency, this increase amounts to 6%. However, if considering all of last year’s acquisitions as if they were part of Entain from January 1, 2023, the revenue, adjusted for constant currency, shows a 3% decrease.
A significant contributor to the increase was robust growth in Central and Eastern Europe (CEE), where reported revenue soared by 124%. This spike was driven primarily by the acquisitions of Poland’s STS and Croatia’s SuperSport in 2023, with SuperSport showing exceptional performance in the first quarter.
The company’s online and retail sectors also saw impressive gains, with online revenue climbing 128% and retail revenue increasing by 111% year-on-year. On a proforma basis, adjusted for constant currency, overall revenue rose by 11%. Additionally, proforma net gaming revenue (NGR) from gaming jumped 30%, while sports NGR and sports wagers increased by 6% and 7%, respectively.
Continued Success in the US with BetMGM
In the US, the BetMGM venture continues to perform well, achieving a 2% increase in NGR this quarter and maintaining a 14% market share across sports betting and igaming. Strength in igaming helped balance lower win margins in both online and retail sportsbooks.
Entain highlighted strong growth in customer acquisition, boosted by effective engagement strategies during key events like the Super Bowl and March Madness. Improvements in app and product capabilities also contributed to this success.
Challenges in the UK and Ireland
In the UK and Ireland, the situation was less favorable, with reported revenue falling by 7%, influenced by ongoing regulatory changes. Online revenue dropped by 9% and retail by 6%. Both proforma and constant currency figures mirrored this decline.
The gaming sector in these regions saw a 7% decrease in proforma and constant currency NGR. Sports NGR fell by 8%, compounded by a 12% reduction in sports wagers during the quarter.
Despite these challenges, Entain remains optimistic about its future in the UK and Ireland, citing operational improvements and a stabilizing regulatory environment as factors that will support growth through 2025.
International Expansion
Outside of CEE, the UK, Ireland, and the US, Entain’s international business also saw growth, with a 4% increase in reported revenue. Both online and retail revenues in these international markets grew by 4%.
However, total international revenue was up only 3% in constant currency. When adjusted to proforma constant currency, there was a slight 2% decrease. In the gaming segment, proforma and constant currency NGR increased by 1%, while sports NGR and sports wagers experienced declines of 5% and 3%, respectively.
Several markets showed positive trends, although challenges in Australia, the Netherlands, and Germany dampened overall performance. Brazil, in contrast, demonstrated strong growth due to operational improvements. Italy, despite significant volume growth, saw a decline in NGR due to customer-friendly sports margins.
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