Global sports betting and gaming entertainment firm Entain plc has posted its Q3 trading update for the period ended September 30 2021, citing sustainable, consistent and diversified growth, notably from BetMGM, its joint venture in the US with MGM Resorts.
During Q3 the firm saw group net gaming revenue (NGR) rise by 4% against a period of high growth in the prior year, with online NGR ahead by 10%, marking a 23rd consecutive quarter of double-digit growth in constant currency.
BetMGM continued to deliver strong growth, with a 23% market share across the US in sports-betting and igaming for the three months to August, claiming clear igaming market leadership with a 32% market share.
CEO Jette Nygaard-Andersen commented: “These results demonstrate Entain’s continuing ability to deliver sustainable, consistent and diversified growth. Our powerful Entain platform provides customers with great products and experiences, which enables us to grow ahead of our markets as demonstrated by 23 consecutive quarters of double-digit online growth.
“As we announced on 12 August, our total addressable market is expected to more than triple to over $160bn. This will be driven by the significant opportunity in the US, where we are now challenging for the number one market position, our growth plans in other new and existing markets, and our strategy of entering into new areas of interactive entertainment.
By offering customers ever more engaging products, while leveraging our scale and technology, we will drive the flywheel effects of secular growth dynamics that can triple the size of our business. As a result, we remain very confident in Entain’s future prospects.”
Russell Pointon, Director, Consumer, at investor research firm Edison Group, commented on the results: “Entain’s Q3 results have delivered continued growth with a strong financial performance. Net gaming revenue during the period rose 4%, or 6% at constant currency, an impressive result against a period of very high growth in the previous year.
“BetMGM also continued to deliver impressive results during the period with a 23% market share across the US in sports-betting and igaming. With a 32% share in igaming, BetMGM is a clear market leader and the group sees industry data as pointing towards BetMGM challenging for the number 1 market position across sports-betting and igaming.”
Pointon added that the group’s projected FY2021 EBITDA remains in line with its previous guidance of $1156.26m-$1224.27m, with expectations that its total addressable market will more than triple to over $160bn.
He concluded: “Looking forward, the group’s strong financial performance places it in a good position to continue this growth. The group’s financial performance also positions it well to continue consideration of the ongoing $22bn buyout proposal from DraftKings on which there has been no further announcement as of yet.”