Entain has published a trading update for the third quarter of 2022, reporting that performance is in line with expectations, with a new record level of active customers and strong momentum heading into the NFL season for BetMGM.
Commenting on the results, CEO Jette Nygaard-Andersen said Entain is looking forward to a solid finish to the year, as well as being confident they can deliver their growth and sustainability strategy in the current economic climate.
Posting its trading update on its website, Entain declared that group net gaming revenue (NGR) for Q3 was up 2% year-over-year (flat cc), and up 4% YoY (1% cc) when excluding operations in The Netherlands. Entain’s NGR three-year CAGR is up 7% cc.
Online NGR is up 1% YoY (-2% cc) “broadly in line with expectations and demonstrating positive underlying momentum”, while a record level of active customers was also achieved during the quarter, up 6% YoY. Entain’s online NGR three-year CAGR is up 11% cc.
Retail NGR is up 10% (10% cc) “continuing to deliver strong trading performance” and up 8% vs pre-Covid levels.
Entain also provided an update on BetMGM, noting that the operations continue “to perform strongly” with a 25% market share where it operates excluding New York (23% including New York).
The operator achieved an NGR of just over $400m for Q3, up 90% YoY, with same-state revenues up 50% YoY thanks to a successful start to the NFL season.
BetMGM continues to be strong in igaming with a 31% market share, while it also has a 25% market share in online sports betting in states where it is live on day one of the market’s launch.
Nygaard-Andersen commented: “Our business continues to perform well with good underlying momentum across the group, including in BetMGM. This illustrates the effectiveness of our growth strategy, the unique capabilities of the Entain platform, and the underlying strength of our diversified global business.
“I am delighted that we have welcomed even more customers to our brands across the world. This is a testament to our relentless focus on the customer, as well as the quality of our products, content, and talented people.
“In the US, BetMGM continues to be the clear leader in the igaming market, and the successful start to the NFL season also highlights the strength of our growing US sports betting offer.”
Elsewhere, the creation of Entain CEE and the transactions of BetCity (Netherlands) and SuperSport (Croatia) are expected to be completed in Q4, while FY22 NGR is on track to reach over $1.3bn.
Entain also continued to progress with its Sustainability Charter, and BetMGM joined other US operators in producing the first industry-led responsibility gaming standards.
Looking ahead to the final quarter, Entain expects “healthy momentum” with online growth YoY, as well as a boost from the FIFA World Cup.
As a result, Entain expects its FY22 Group EBITDA to be in line with its previous guidance of £925m to £975m ($1.02bn to $1.08bn), a 5% to 10% growth YoY.
“We have healthy momentum across the business and look forward to a strong finish to the year which includes the World Cup,” added Nygaard-Andersen.
“Looking ahead, we remain vigilant of the economic backdrop. However, our diversified revenue base and robust business model enable us to remain confident in our ability to deliver on our growth and sustainability strategy.”
