Entain ‘confident’ in 2023 growth following strong Q1

Jette Nygaard-Andersen
Image: Entain

Entain has declared a 15 per cent rise year-over-year in net gaming revenue in the first quarter of 2023 thanks to a strong performance from retail and online operations.

Reflecting on the results, CEO Jette Nygaard-Andersen noted that she is “confident” that its strategy will help the group grow organically and progress further.

Publishing its Q1 financials, Entain reported a strong start to 2023 with NGR rising by 15 per cent YoY (11 per cent in constant currency). Including the group’s 50 per cent share in BetMGM, NGR grew by 17 per cent for the measuring period.

Broken down per segment, online NGR improved by 16 per cent YoY (11 per cent cc) during the quarter which Entain says is “in line with expectations and demonstrating strong momentum”. Online gaming improved by 25 per cent while online sports operations rose by eight per cent.

Online operations also saw record active customer levels, up 19 per cent (14 per cent proforma) from the previous year.

The group’s retail operations had a strong performance during Q1 as well, increasing by 14 per cent YoY (13 per cent cc).

BetMGM achieved an NGR for the quarter of $470m, a 76 per cent uptick YoY as the operator had a successful Super Bowl and March Madness period with “strong customer acquisition”.

Entain also stated that BetMGM’s Q1 NGR is “delivering in line” with 2023 guidance of $1.8bn-$2bn and is on track for a positive EBITDA in the second half of the year.

The operator’s igaming market share stands at 28 per cent, but this decreases to 17 per cent when sports betting and igaming markets are combined. Player economics also “continue to support state cohort profitability”.

Nygaard-Andersen commented: “2023 is off to a strong start, with continuing underlying momentum across our operations around the world. 

“We are delivering both financially and strategically, with a record number of active customers enjoying our products, and we are executing on growth opportunities to further diversify and expand across regulated markets.

“In the US, BetMGM continues to grow in line with expectations and enjoyed a successful quarter which included the Super Bowl and March Madness.”

During Q1, Entain continued executing its strategic growth strategy with “further diversification and expansion” in regulated markets and across products.

Notably, the group entered a strategic partnership to provide wagering operations to TAB New Zealand and acquired 365scores to “broaden customer appeal and support online growth”.

Entain has also continued to focus on and progress with its sustainability strategy, highlighting that it is the “only global operator with 100 per cent revenue from regulated or regulating markets”.

The group also entered a two-year commitment programme with Gordon Moody Charity as part of Entain Foundation’s responsible gaming funding. 

Entain’s Advanced Responsibility and Care (ARC) player protection programme has also achieved over 3.7 million interactions, while in ESG, Entain also retained its AA rating by MSCI ESG Ratings.

“Looking ahead, we remain confident that our customer focus, diversification and proven ability to grow organically and through M&A will enable us to demonstrate further progress against our strategy,” Nygaard-Andersen concluded.