- The growth in online revenues is helping to offset the continued decline on the high street
Jackpot: Strong start for new boss Gavin Isaacs
Entain expects full-year earnings to come in at the high end of expectations as strong growth in online gambling continues to offset the decline in brick-and-mortar commerce.
The Ladbrokes owner’s net online gaming revenue exceeded expectations in the three months to September 30, growing 12 percent at constant exchange rates, excluding the US.
Entain, which has expanded into the US through its BetMGM joint venture, saw online sales increase across all regions, with growth returning earlier than expected in Britain and Ireland.
However, retail sales fell 4 percent across the region, while in-store sales were flat year-on-year in all markets.
Nevertheless, Entain told investors it now expects 2024 profits to reach “the top end” of a guidance range of £1.04bn to £1.09bn, before any dire fallout sets in.
CEO Gavin Isaacs, who joined the group just over a month ago, said: ‘Entain is already on a path to strategic and operational improvement, with the strong performance in the third quarter demonstrating the progress made to date.
“We are at the beginning of the journey and I look forward to accelerating our progress, leading the company into our next chapter of growth and seizing the many exciting opportunities ahead.”
Own shares rose 3.3 percent to 735.8p in early trade.
Shares took a hit earlier this week after reports that the Labor government is proposing a £3 billion tax attack on the gambling sector.
Entain’s recent growth has been driven by inorganic expansion, with its joint venture with MGM in the US seeing net gaming revenue rise 18 percent year-on-year in the third quarter.
The group, which also owns Coral, said the U.S. growth reflected “an improved product and increased investment in player acquisitions.”
Richard Hunter, head of markets at Interactive Investor, said US growth has proven “a tough lift” for Entain, with “promotional investment having been something of a necessary headwind”.
He added: ‘The fact that it is such a fast-growing and lucrative market for providers has quickly led to a level of fierce competition, with the joint venture having to keep running to remain quiet as other competitors emerge and replace existing players double down. on their offering in terms of prices, promotion and presence.’
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