Entain group NGR up 6% in Q1 with results “in line with expectations”
FTSE 100 giant notes 7% NGR dip in UK and Ireland amid swathe of customer-friendly results in first three months of the year
Entain has reported a 6% year-on-year (YoY) spike in total group NGR for Q1 2024 as the London-listed operator noted the first three months of the year were in line with internal expectations.
As per Entain’s reporting style, the group only detailed percentage changes for its KPIs as part of the trading update, with group NGR down 3% on a pro forma basis.
However, group online NGR, excluding the US where Entain operates its 50/50 JV BetMGM with MGM Resorts International, dropped 2% YoY.
Geographically, Entain saw UK and Ireland NGR slip 7% with the firm citing the continued impact of its internal “regulatory implementation” as the main cause.
The group also reported pro forma declines across online, of 21% in sports betting stakes and a 13% decline in sports betting NGR during the period, with gaming down 8%.
Online NGR fell 9% on both a reported and pro forma basis while retail NGR dipped 6%.
Entain said: “Our actions that are driving operational improvements together with the levelling of the UK regulatory landscape will position our brands well for growth into 2025.”
The FTSE 100 firm has also changed the way it structures its geographical reporting, with an International arm and Central and Eastern Europe arm (Poland and Croatia) having been carved out.
The International arm reported an 8% downturn in NGR on a reported basis, with the metric dipping 2% for pro forma.
Entain pointed to “positive performance across many markets” which was offset by “expected softness in Australia, Netherlands and Germany”.
The operator did champion an “encouraging return” in Brazil during the first three months of the year.
In Italy, strong volume growth was impacted by customer-friendly sports margins.
Entain CEE for online, which comprises its SuperSport and STS operations, saw NGR up 11% on a pro forma basis.
Looking to the US, BetMGM saw NGR rise 2% on a pro forma basis while its market share amounted to 14%, which has fallen from 18% since Q3 2023.
Management said there had been strong growth in customer acquisition during the reporting period thanks to the Super Bowl and March Madness, as well as noting improved app and product capabilities.
Entain also said that continued igaming gains were offset by customer-friendly sports results.
The company explained that adjusting for this would mean estimated Q1 NGR would have been high single digits.
Stella David, Entain interim CEO, shared that progress had been made against the group’s operational objectives during the reporting period.
She said: “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.
“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 organisational 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 US. We remain confident that our continued focused execution will drive organic growth into 2025 and beyond,” she added.