Sports betting company Entain PLC (LSE:ENT) lowered its online growth guidance as the cost of living crisis affects the amount customers want to bet.
The FTSE 100-listed group, which owns betting brands from Ladbrokes and Sportingbet to Foxy Bingo, reported that a “weaker macro macro-economic environment is reducing customers' rate of spend, moderating overall online growth versus our previous expectations”.
It lowered its online revenue growth guidance to “flat” from “mid to high single digit” for the full year after online sales fell by 7% across sports and gaming in the first half of the year. as it faced an “uncertain” macroeconomic outlook.
Overall net gaming revenue rose 18% in the first half of the year, it said in a trading update today, which was driven mainly by its retail arm, where revenue rose 243% compared to the pandemic-hit period a year ago when shops were shuttered.
“We continue to expand our growth opportunities through complementary acquisitions with four transactions so far this year,” said Entain’s chief executive Jette Nygaard-Andersen.
“The macro-economic outlook is uncertain, however the underlying performance of our business remains strong. With an increasingly recreational customer base and relatively resilient revenue.”
Entain is also looking to overseas markets and remains on the acquisition trail. The company's BetMGM joint venture now holds a 24% share of the US market, according to Nygaard-Andersen.
Last month Entain agreed to buy Dutch betting company BetCity from Sports Entertainment Media BV in a cash deal.
“We remain confident that our customer focus, diversification and proven ability to grow both organically and through M&A will enable us to deliver further progress against our strategy,” the CEO said.
The shares fell 3.5% to 1,100p in early trade on Thursday.
Broker Peel Hunt said the new guidance appeared to imply a 9% reduction to its full year EBITDA forecast.