Entain UK revenue down 7 per cent in Q1

The company says new regulations caused the decline.

UK.- The FTSE-listed gambling group Entain has blamed the impact of new regulations for a 7 per cent drop in UK and Ireland net gaming revenue for Q1. In its trading update, it said the results were in line with expectations and that it was working to drive operational improvements to position its brands for growth into 2025.

Entain’s total revenue was up 3 per cent, boosted by its central and eastern European business and BetMGM, its joint venture with MGM in the US. Net gaming revenue from the international segment was up 8 per cent but down 2 per cent on a pro forma basis. Brazil boosted international results through to operational improvements. Entain’s CEE business saw NGR rise 11 per cent, with growth particularly strong in Croatia. 

As for the US, BetMGM NGR was up 2 per cent on the back of customer acquisition during events like the Super Bowl and March Madness. Entain claims it has a 14 per cent market share in sports betting and igaming in the markets where it operates and that revenue was impacted by customer-friendly win margins. 

Interim CEO Stella David said: “Our Q1 performance was in line with our expectations, with growth reflecting both strong performances in many of our markets as well as known challenges in others. We are particularly encouraged by the level of customer engagement in the US following a successful Super Bowl and March Madness, as well as our return to growth in Brazil following the changes we implemented.

“Overall, we are pleased with the progress being made against our plan to accelerate Entain’s operational performance. There is still more to do, but the team is fully engaged in delivering operational improvements, product enhancements, as well as greater organisational agility and efficiency. We look forward to building on this momentum as we focus on our strategic priorities of organic revenue growth, margin expansion and winning in the US. We remain confident that our continued focused execution will drive organic growth into 2025 and beyond.”

Entain has announced that chairman Barry Gibson will resign by the end of September 2024. The group has set up a Capital Allocation Committee (CAC) to evaluate its portfolio of brands. It was reported last month that the company was seeking a buyer for PartyPoker.