- Entain saw its net gaming revenue in the UK and Ireland fall 7% in recent months
- FTSE 100-listed Entain has seen its share price fall by over 37% in the last year
Ladbrokes owner Entain saw its UK in-store and online net gaming revenue (NGR) fall in recent months, amid tighter regulatory requirements.
The group, which also runs Coral, saw its NGR across the UK and Ireland fall by 7 per cent in the first three months of the year.
Entain said ‘regulatory implementation’ affected its latest figures. In April last year, the Government published its gambling white paper, introducing a statutory levy and stake limits on certain types of betting.
Update: Ladbrokes owner Entain saw its UK in-store and online net gaming revenue fall in recent months
Across all its operations, including its 50 per cent stake in BetMGM, Entain’s NGRs were ahead by 6 per cent at constant currencies by the end of the period.
International NGR rose 8 per cent, amid an ‘encouraging’ return to ‘good’ growth in Brazil. NGR in Croatia and Poland continued to perform well, rising by 130 per cent, the group said.
BetMGM saw NGR rise 2 per cent year-on-year, with a 14 per cent market share in sports betting and iGaming in the markets where it operates.
Entain shares rose 1.14 per cent or 9.2p to 815.40p on Wednesday, having fallen over 37 per cent in the last year.
The FTSE 100-listed group said it was focused on boosting revenue, raising margins and ‘winning in the US.’
Stella David, Entain’s interim chief executive, said: ‘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.
‘Overall, we are pleased with the progress being made against our plan to accelerate Entain’s operational performance. There is still more to do, but the team is fully engaged in delivering operational improvements, product enhancements, as well as greater organisational agility and efficiency.’
She added: ‘We remain confident that our continued focused execution will drive organic growth into 2025 and beyond.’
Quit: Entain is searching for a new chief executive after the abrupt departure of Jette Nygaard-Andersen, pictured, in mid-December
Entain is searching for a new chief executive after the abrupt departure of Jette Nygaard-Andersen in mid-December.
Jette Nygaard-Andersen exited after nearly three years in charge, with non-executive director Stella David replacing her on an interim basis.
The departure of Nygaard-Andersen followed the Royal Courts of Justice’s approval of a deferred prosecution agreement between the company and the Crown Prosecution Service in December last year.
The deal ended a four-year investigation by HM Revenue & Customs into a Turkish-facing business sold by the Ladbrokes owner in 2017, which involved the activities of ex-employees and third-party suppliers.
Earlier this month, Entain shares rose following reports private equity predators were poised to swoop in on the gambling giant.
Richard Hunter, head of markets at Interactive Investor, said: ‘Overall the share price has suffered as a result of a number of unanswered questions, not least of which is regulatory threat, emerging competition in the US and the ongoing search for a permanent CEO, which injects some uncertainty into the group’s immediate strategic direction.’
He added: ‘Despite the headwinds, BetMGM remains the most exciting driver for potential growth at Entain, alongside which the company is looking to improve its operations and exit less profitable markets.
‘As such, and although Flutter Entertainment remains the preferred play in the sector, the market consensus of the shares as a buy reflects real optimism in prospects for established longer term growth.’
