The Entain PLC (LON: ENT) share price edged 3.32% higher after releasing its Q3 business update for the three months from 1 July 2023 to 30 September 2023. The betting company noted that its Total Group Net Gaming Revenue (NGR), including the US, increased by 7% and 10% on a constant currency basis compared to the same period last year.
![Entain Division Ladbrokes](https://www.asktraders.com/wp-content/uploads/2023/11/Entain-Division-Ladbrokes.jpg)
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The Group NGR (excluding the US) showed strong growth, up by 7% and 9% on a constant currency basis, with a proforma decline of -5%. Online NGR increased by 9% or 11% on a constant currency basis, in line with updated expectations.
The betting company, which owns the popular betting brand Ladbrokes, took a £45 million hit to its bottom line as a result of ‘continued customer friendly' results in sports betting.
Excluding known regulatory impacts, Online NGR was up by 17% on a constant currency basis and remained flat on a proforma basis. The customer-friendly sports results in September had a 2-3 percentage point impact on NGR. Entain’s active customers grew, with a +26% YoY increase and a 10% proforma increase.
BetMGM continued to perform strongly, with Q3 NGR of approximately $458 million, representing a YoY growth of about 15%. BetMGM achieved an 18% market share in sports betting and online gaming in the markets where it operates, excluding New York.
The company is on track to achieve NGR at the upper end of the $1.8-$2.0 billion guidance for FY2023 and expects to be EBITDA positive in H2 2023.
Entain aims to accelerate its operational strategy with several key initiatives, including focused market portfolio optimisation, focusing on high-growth and high-return markets, including the US, Brazil, CEE, and New Zealand.
The betting and gaming company prioritises profitable growth in core markets, such as the UK, Australia, Italy, Germany, and the Baltics.
Jette Nygaard-Andersen, Entain's CEO, commented: “Entain has undergone a profound transformation over the last few years and now has strong foundations from which to move into its next phase of growth. We have made significant investments in responsible gambling initiatives. While these steps have impacted EBITDA, they are unquestionably the right thing to do to improve our long-term prospects. From here, we have a clear plan to focus our portfolio for organic growth, drive our market share in the US, improve our operational leverage, and increase our EBITDA margins.”
Entain share price.
The Entain share price edged 3.32% higher to trade at 968.3p from Wednesday’s closing price of 937.2p.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.