Entain, a giant in the gaming and betting sector, released promising results for the third quarter of 2024, exceeding initial expectations. However, the company also expressed concerns about potential tax changes in the UK.
The group reported a significant increase in net online gaming revenue (NGR), with growth of up to 10% compared to the previous year. This performance led the company to revise its projections for fiscal year 2024.
Thus, expecting “positive online gaming net revenue growth in the mid-single digits on a constant currency basis.”
Gavin Isaacs, the newly appointed CEO of Entain, commented on the performance: “My first few weeks as CEO of Entain have reaffirmed my view that this is a very good business, operating in a highly attractive global industry.”
“Entain has great brands, an enviably diverse global portfolio and is brimming with talent, ambition and opportunities.”
Alert about Entain’s taxes and growth in Brazil
Despite the optimism, Isaacs warned about the potential impact of a tax rise on the UK betting market. “Until the budget is announced, it’s all conjecture.”
“We continue to highlight to the Treasury that a supposed tax increase would have a materially detrimental impact on the industry’s economic contribution. In this way, putting at risk thousands of jobs, funding for sports and racing, as well as benefiting the irregular market,” he continued.
Additionally, Entain reported strong performance in international markets, notably Brazil, where net gaming revenue rose 48% in constant currency. The company also mentioned SuperSport‘s “particularly strong” performance in Croatia.
Result of the partnership with BetMGM in the USA
The BetMGM joint venture, partnered with MGM Resorts International in the US, had an “encouraging start to the second half”, with 18% growth in third quarter net gaming revenue.
Looking ahead, Isaacs concluded: “Entain is already on a path of strategic and operational improvement, with the strong third quarter performance demonstrating the progress made to date.”
“We are at the beginning of the journey and I look forward to accelerating our progress, leading the business into our next chapter of growth and capturing the many exciting opportunities that lie ahead.”
Entain now expects revenue near the top of the guidance range of £1.04 billion to £1.09 billion for fiscal 2024, reflecting the company’s confidence in its global performance and growth strategies.
