Entain PLC's (LSE:ENT) first-quarter trading was described by broker Shore Capital as “encouraging”, with its core online business offset by weaker sports results.
The betting and gaming group reported net gaming revenue excluding the US up 3% in the three months to March, with volumes rising 8% but hit by “unfavourable sports results”.
Digital revenue grew 5%, supported by strong wagering activity, while retail slipped 3% as margins came under pressure.
Shore Cap said that underlying trends were stronger than the headline numbers suggest, with volume growth of 10% in digital masking the impact of sports outcomes.
Performance was led by the UK and Australia, both delivering double-digit online growth, while retail remained softer despite stable machine income.
In the US, BetMGM was more disappointing. Revenue growth slowed to 6% in the quarter, with full-year guidance cut to $2.9-3.1 billion, reflecting both weaker sports results and more disciplined marketing.
Despite this, earnings guidance for the joint venture was maintained, albeit at the lower end of the range, with the business still targeting $500 million of EBITDA by the 2027 financial year.
Looking ahead, analysts flagged the potential impact of higher UK gambling duties and ongoing uncertainty in the US market, though full-year guidance for the group was reiterated.