A better-than-expected third quarter of 2024 has Entain plc raising its full-year guidance.
The global sports betting and iGaming company that owns 50% of BetMGM announced on Thursday an 8% year-over-year total net revenue increase from the period of July 1 through Sept. 30.
The strong results have Entain, which also owns popular brands Ladbrokes, bwin, Eurobet, and Party Poker, increasing net gross revenue to reach mid-single-digits in FY24. That’s up from low-single digits positive expected in August and much improved from the low-single-digit loss projected in March.
“We expect EBITDA to land toward the top end of our previously guided range of £1,040 to £1,090 million, which is a little ahead of where consensus sits today,” CFO and deputy CEO Rob Wood said. “Pleasingly, for the first time this year, we now expect group organic EBITDA to return to year-on-year growth this year in constant currency, which of course is the aim in future years as well.”
Optimism in the U.S.
BetMGM revenue jumped 18% from Q3 2023 on a constant currency basis behind improved parlay and player prop products, Entain reported.
The sportsbook and online casino obtained a 15% market share, up from 13% in the previous quarter, which reflects a higher seasonal betting volume in Q3. iGaming grabbed a 22% market share in another record gross revenue quarter. The sports betting operator came in with 8% in Q3.
“The key message is that we see share stabilization from which to build in future quarters,” Wood said.
Retention, engagement measures, parlay mix, and expected win margin have shown early positive signs, Wood said, in a Q4 loaded with MLB, NFL, college football, NBA, and NHL betting.
The company has also completed the single account, single wallet functionality process in Nevada, where customers can now access their out-of-state BetMGM accounts in the Silver State.
Wood said a significant portion of players are continuing to bet after returning home, adding to an already positive outlook on the U.S. brand’s growth.
“We have been clear that 2024 is a year of investment for BetMGM and we’re cautiously optimistic that early indicators show we’re gaining momentum,” Wood said.
Around the world
Entain’s non-U.S. online revenue rose 10% year-over-year.
Q3 was highlighted by 48% year-over-year growth in Brazil and 11% in Central and Eastern Europe.
The U.K. and Ireland markets grew just 2% year-over-year, but Entain’s online revenue went from down 9% in the first half of 2024 to up 6% in Q3. The region experienced growth for the first time since Q2 2021 because of regulatory changes, Entain said.
Gavin Isaacs took over as the new CEO on Sept. 2 while Stella David succeeded David Gibson as chair on Sept. 30.
Entain also completed a strategic review of Georgia sportsbook CyrstalBet, and the company decided not to pursue a sale as third-party interest failed to exceed Entain’s value of the operator.
“My first few weeks as CEO of Entain have reaffirmed my view that this is a very good business operating in a highly attractive global industry,” Isaacs said. “Entain has great brands, an enviably diverse global portfolio, and is bursting with talent, ambition, and opportunities. Entain is already on a path of strategic and operational improvement, with the strong Q3 performance demonstrating the progress achieved so far. We are at the beginning of the journey and I’m looking forward to accelerating our progress, leading the business in our next growth chapter, and capturing the many exciting opportunities ahead.”
