Entain PLC (LSE:ENT), the FTSE 100-listed betting company and owner of Ladbrokes, Sportingbet and Foxy Bingo, is pinning its hopes on a return to growth in 2024.
The group warned in September that online gaming revenue had been softer than expected due to adverse sporting results and ongoing regulatory headwinds.
Today’s third-quarter results were in line with cautious expectations. Online net gaming revenue (NGR) for the quarter was up 9% on a reported basis, but down 6% on a proforma basis.
Total group revenues, including retail and BetMGM sales in the US, were up 7%, bolstered by BetMGM’s strong third quarter, which saw net gaming revenues surge 15% year on year.
Entain took a two-to-three percentage point hit from “customer-friendly sports results” in September.
Chief executive Jette Nygaard-Andersen 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 has maintained its full-year EBITDA guidance between £1 billion and £1.05 billion.
Looking ahead to 2024, Entain is gunning for low-single-digit growth in proforma NGR, supported by a return to growth during the second half of the year.