Entain PLC (LSE:ENT) warned online gaming revenue has been softer than expected, hit by adverse sporting results during September and ongoing regulatory headwinds.
The owner of Ladbrokes and Coral said since the summer, online net gaming revenue (NGR) has been mixed, but in aggregate, softer than anticipated.
It now expects third-quarter online NGR growth to be up high single-digit percent, and down high single digit percent on a proforma basis.
Nonetheless, the firm still expects 2023 EBITDA to be in the range of £1.00 billion-£1.05 billion, supported by robust operational controls.
Adverse sporting results impacted sports margins during September while group-wide implementation of safer gambling measures and ongoing regulatory headwinds persisted longer than expected, particularly in the UK.
Entain said growth was slower than expected in Australia and Italy.
In better news, the gambling firm highlighted a robust performance in retail and strong performances from recent acquisitions, particularly SuperSport in Croatia.
BetMGM in the US continues to perform well and is on track to deliver positive EBITDA in the second half of 2023, with full-year 2023 NGR at the upper end of $1.8-$2.0 billion guidance.
Entain plans to unveil a strategic update on 2 November and said this would include a simplified group structure, moving new acquisitions onto its technology platform and progress on delivering its online EBITDA margin target of 30%.