Entain and BetMGM Display Strong Performance Amid Market Challenges

Particularly noteworthy is the performance of BetMGM, a joint venture with MGM Resorts, in which Entain holds a 50% stake. This venture continues to demonstrate relatively satisfactory results, especially in the U.S. market, where it enjoyed a 2% increase in Net Gaming Revenue (NGR).

Global Revenue Dynamics

Entain’s overall revenue rose by 6% on a constant currency basis. However, when considering acquisitions made last year and integrating them into the 2023 figures, there’s a noted 3% decline on a pro forma basis.

Despite these fluctuations, significant gains in Central and Eastern Europe, where revenue surged by 124% due to acquisitions such as STS in Poland and SuperSport in Croatia, bolstered Entain’s portfolio.

U.S. Market Focus

The U.S. market has been particularly lucrative for Entain, fueled by big sporting events such as the Super Bowl and March Madness, which heightened customer engagement.

BetMGM’s strategic maneuvers have set a strong foundation for continuous growth in this region, aligning with Entain’s broader strategy to expand its footprint and secure a dominant position in the competitive U.S. betting landscape.

Challenges and Prospects

While the UK and Ireland presented challenges with a 7% decline in reported revenue, Entain remains optimistic about its future in these markets.

This optimism is supported by the company’s focus on operational improvements and adapting to a more stable regulatory environment.

Furthermore, Entain has shown resilience across other global markets, including a notable return to growth in Brazil.

Strategic Outlook

Stella David, Interim CEO of Entain, expressed satisfaction with the quarter’s performance, emphasizing the balance between strong performances in several markets and the ongoing challenges in others. “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,” she said.

Both online and retail sectors of Entain showed remarkable year-on-year growth, with reported revenue up by 128% and 111%, respectively. The pro forma basis reports an 11% increase in revenue at constant currency, with net gaming revenue from gaming rising by 30%, and sports net gaming revenue and sports wagers growing by 6% and 7%, respectively.