Entain plc has disclosed its recent trading results and projections for FY 2023. In addition, the company plans to provide updates on its strategies designed to enhance operational efficiency.
After the summer season, the Online Net Gaming Revenue (NGR) has shown varied results across the Group’s portfolio. The Q3 Online NGR is projected to increase in the high single-digit percentage range, and decrease similarly on a proforma basis. Factors contributing to these outcomes include unexpected sports results in September, the introduction of gambling measures in the UK, slower growth in Australia and Italy, and an increase in online active customers during the quarter.
Other observations include the performance of newly acquired entities, such as SuperSport in Croatia, and the consistency in retail operations. In the US, BetMGM has set its sights on achieving positive EBITDA in the second half of 2023, with a targeted NGR between US$1.8-US$2.0bn. The integration of features like Single Account Single Wallet and enhancements to the online sportsbook have been noted, especially with the onset of the NFL season.
For FY2023, the Group’s Online NGR is anticipated to increase by a low double-digit percentage and decrease by a low single-digit percentage on a proforma basis. EBITDA for FY2023 is projected to be within the £1.00bn-£1.05bn (US$1.22 bn/€1.15 bn) range.
Over the past three years, Entain has made changes in its strategic direction. During the Q3 trading update on 2 November 2023, the company will provide more details on these changes, which include an extensive market analysis, streamlining of operations, integration of new entities onto their technology platform, and refinement of capital distribution strategies. The company also mentioned its aim of achieving an Online EBITDA margin goal of 30%. The reported period extends from 1 July to 22 September 2023, and growth estimates are based on 2023 exchange rates.
Jette Nygaard-Andersen, CEO of Entain, commented: “We continue to see good underlying growth in our online business and are reiterating our EBITDA guidance for the year despite softer than expected revenue growth in Q3 and the ongoing roll-out of industry-leading safer gambling measures. We continue to attract more customers than ever before to enjoy our products and services. BetMGM remains on track to deliver positive EBITDA in H2 and a full year NGR performance at the top end of our expectations, and we are particularly excited about the product improvements that we are rolling out over the NFL season.
We have made significant changes to the Group over the last three years. Our focus now is on accelerating the actions we are taking to drive sustainable organic growth, expand our margins, capitalise on the US opportunity and deliver long-term returns for our shareholders. We remain confident in our ability to deliver on the vast opportunities ahead of us, and look forward to sharing more detail about the changes that we are making alongside our Q3 trading update in November.”
