Entain’s Shares Rise 4.4% As FTSE 100 Firm Reports “Strong Start” To 2023

Gambling business Entain’s share price rose on Tuesday after it reported a “strong start” to the new year.

At £13.62 per share the FTSE 100 stock was last trading 4.4% higher on the day.

Entain — which operates brands including bwin, Ladbrokes and Coral — said that net gaming revenues (NGRs) rose 15% during the first quarter. At constant currencies revenues increased 11% year on year.

Including contributions from its BetMGM joint venture in the US, first quarter NGRs increased 17% at stable exchange rates.

Broad-Based Strength

Online NGRs at Entain rose 16% between January and March, or 11% at constant currencies. This was helped by the number of active customers increasing 19% year on year and hitting record levels.

Online gaming revenues which increased 25% year on year, while sports NGRs rose by a more modest 8%.

Meanwhile, NGRs at the company’s betting shops rose 14% in the first quarter. At unchanged currencies these increased 13%.

Entain noted that its BetMGM joint venture “continues to grow strongly,” with NGRs here leaping 76% year on year to $470 million.

This was helped by ‘March Madness’ and a strong Super Bowl, Entain commented. It added that customer acquisitions remained robust during quarter one.

The FTSE 100 firm said that the US unit — in which it holds a 50% stake — is performing in line with guidance. It is expected to deliver NGRs of between of $1.8 billion and $2 billion during 2023.

BetMGM also remains on track to deliver positive EBITDA in the second half of the year, Entain said.

Confident Words

Chief executive Jette Nygaard-Andersen commented that “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.”

He added that “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.”

Earlier this week Entain acquired sports media business 365scores for $150 million. The move it designed to “broaden customer appeal and support online growth,” the FTSE firm said.

365scores provides results and statistics in real time across sports including football, basketball, tennis and baseball.