Fueled by its expanding online business, the British gambling behemoth Entain announced an 8% increase in group revenue for the third quarter. According to the company’s trading update, adjusted EBITDA for the entire year could exceed its projection, which was estimated to be between £1.04 billion ($1.35 billion) and £1.09 billion.
With a 6% increase in online income, Entain’s regional performance showed a 2% gain in revenue from the UK and Ireland. Group revenue increased by 6% globally, with Central Eastern Europe (CEE) leading the way with an impressive 53% growth. Brazil also had notable growth, with a 48% increase in revenue. CFO Rob Wood did point out that growth might be slowed down in 2019 due to competition in Brazil’s recently regulated market.
CEO Gavin Isaacs commented on the company’s ongoing progress: “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.”
Despite these gains, Entain’s retail segment faced a 1% decline. Wood highlighted that while many markets saw online growth, countries like Italy, Belgium, and Poland experienced declines, affecting retail performance.
BetMGM and Future Prospects
Entain’s U.S. joint venture, BetMGM, reported an 18% year-on-year revenue increase and maintained a 15% market share. Isaacs noted, “We’re not yet on an upward trajectory but we do have stability… holding market share is step one,” emphasizing the importance of staying competitive amid rising pressures in the U.S. market.
Additionally, Entain decided not to sell its Georgian brand, Crystalbet, after a strategic review. Isaacs mentioned the offers received were too low to justify a sale.
Looking forward, Entain is optimistic about its full-year performance, with Q3 results exceeding expectations. “We’ve beaten our expectations again in Q3… Online growth is back to being broadly inline with market growth,” Wood added. Following the update, Entain’s shares rose by 3.6%.
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