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Entain records good progress, increase in active customers

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Gambling giant Entain has surprised analysts with its resilience in the face of challenging market conditions.

Despite stiff competition and regulatory pressures, the company managed to mitigate a decline in online gaming revenue for the first quarter, buoyed by an increase in active customers.

Shares of Entain surged nearly 4 percent in early trading following the announcement. The Ladbrokes owner, currently in search of a new CEO after the sudden departure of Jette Nygaard-Andersen in December, revealed that quarterly online gaming revenue dipped by only 2 percent on a proforma basis, a figure significantly better than the anticipated 4 percent to 6 percent decline predicted by analysts.

On a reported basis, however, online gaming revenue actually saw a 6 percent growth. Despite a 9 percent fall in online gaming revenue in the UK & Ireland, the company remains optimistic about future growth prospects in the region, citing operational improvements and regulatory measures.

There were positive developments elsewhere, as Entain witnessed revenue growth in Brazil and strong volume growth across international markets such as Italy, Brazil, and New Zealand. Additionally, Central and Eastern Europe markets showed improved performance during the quarter.

The growth in active customers, climbing by 11 percent on a proforma basis, is seen as a positive sign for the company’s future trajectory. However, softer margins in Italy, attributed to results from the Serie A soccer league favoring bettors, partially offset the volume growth.

Overall, Entain reported a 6 percent growth in total net gaming revenue for the quarter. Analysts at Jefferies remain optimistic about the company’s prospects, noting that a streamlined focus on core markets is expected to lead to a turnaround in net gaming revenue momentum later in 2024, with Brazil already showing encouraging signs of growth.

Frank Schuengel
Frank Schuengel
Frank Schuengel is an online gambling industry veteran with over twenty years of experience in Europe and Asia. Equally at home in the Isle of Man and the Philippines, he started his career as a sports trader before setting up and running whole operations, and more recently focusing on the regulatory and licensing side of things in the worlds of fiat and crypto eGaming. When he is not writing about gambling topics, he can be found cycling around Manila and advocating sustainable transport solutions for a Philippines based mobility magazine.

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