Entain Plc Q1 2024 performance and future prospects

Lea Hogg 1 month ago
Entain Plc Q1 2024 performance and future prospects

Entain Plc (LSE: ENT), has released its trading report for Q1 2024, revealing key insights into its performance and future growth strategies.

The report highlights that Entain continues to make significant progress in improving the operational performance of the business, driving organic revenue growth. The total Group Net Gaming Revenue (NGR), including a 50 percent share of BetMGM, was up by 6 percent, and down by 3 percent on a proforma basis. This performance aligns with the company’s expectations.

In the UK and Ireland, NGR was down by 7 percent (Online -9 percent, Retail -6 percent) due to the ongoing effects of regulatory implementation. However, the company’s actions that are driving operational improvements, coupled with the levelling of the UK regulatory landscape, are expected to position its brands well for growth into 2025.

Internationally, NGR was up by 8 percent, and down by 2 percent on a proforma basis (Online -1 percent, Retail -8 percent). Despite expected softness in Australia, Netherlands, and Germany, there was a positive performance across many markets. Particularly encouraging was the return to good year-on-year growth in Brazil, driven by ongoing operational improvements initiated in 2023. However, despite strong volume growth, NGR in Italy was impacted by customer-friendly sports margins.

Entain’s Central and Eastern Europe (CEE) operations continued to perform well, with NGR up by 11 percent (Online +11 percent, Retail +9 percent) on a proforma basis. SuperSport in Croatia performed particularly strongly.

Global sports betting and regulatory changes

BetMGM delivered Q1 NGR up by 2 percent year-on-year, with a 14 percent market share in sports betting and iGaming in the markets where it operates. The continuing iGaming strength was offset by customer-friendly win margins across online and retail sportsbooks. Adjusting for the impact of sports margin, estimated Q1 NGR would have been high single-digit positive. BetMGM saw strong growth in customer acquisition, supported by successful Super Bowl and March Madness engagement and improving app and product capabilities. With an enhanced player experience and an exciting pipeline ahead, including more Angstrom-powered offerings, BetMGM is well-positioned to invest for future growth.

Stella David, Interim CEO of Entain, commented on the Q1 performance, expressing satisfaction with the progress being made against the company’s plan to accelerate Entain’s operational performance. She highlighted the strong performances in many markets and the known challenges in others. She also noted the level of customer engagement in the US following a successful Super Bowl and March Madness, as well as the return to growth in Brazil following the changes implemented.

David emphasized that while there is still more to do, the team is fully engaged in delivering operational improvements, product enhancements, as well as greater organisational agility and efficiency. She expressed confidence in the company’s strategic priorities of organic revenue growth, margin expansion, and winning in the U.S., and believes that their continued focused execution will drive organic growth into 2025 and beyond. This detailed analysis of Entain’s Q1 2024 performance provides valuable insights into the company’s strategies and future prospects in the global sports betting and gaming industry.

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