Multinational sports betting and gaming company Entain has maintained its revenue expectations for the first quarter of the year, showing a 3% year-on-year increase, despite facing challenges in the UK and Ireland markets.
In its trading update released on Wednesday, Entain reported a rise in revenue, including in BetMGM, the joint venture with MGM Resorts in which it holds a 50% stake.
The reported revenue saw a 6% increase on a constant currency basis. However, considering all acquisitions from last year as part of Entain’s portfolio since January 2023, the revenue showed a 3% decline at constant currency on a pro forma basis.
The growth in Central and Eastern Europe (CEE) played a significant role in the overall increase. Reported revenue in CEE surged by 124%, attributed to acquisitions like STS in Poland and SuperSport in Croatia during 2023. Particularly, SuperSport performed exceptionally well during the first quarter.
“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,” Stella David, Interim CEO of Entain, said.
“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 organizational 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 U.S. We remain confident that our continued focused execution will drive organic growth into 2025 and beyond,” she added.
The company witnessed substantial growth in both reported online and retail revenue, up by 128% and 111% respectively, year-on-year.
On a pro forma basis and at constant currency, the revenue showed an 11% increase. Moreover, pro forma net gaming revenue (NGR) from gaming experienced a notable 30% surge, while sports NGR and sports wagers increased by 6% and 7% respectively.
Despite facing regulatory challenges in Australia, the Netherlands, and Germany, Entain saw a positive performance in various markets, including a promising return to growth in Brazil. However, the UK and Ireland markets presented a decline in reported revenue by 7%, with online and retail revenue down by 9% and 6% respectively.
However, despite the challenges in Q1, Entain said it is optimistic about its prospects in the UK and Ireland, citing operational improvements and a more stable regulatory environment. As for the US market, the BetMGM venture continues to thrive, with NGR increasing by 2% during the first quarter.