Entain See Shares Slide Following Q3 Update

Jette Nygaard-Andersen boss of Entain

Ladbrokes and Coral operator Entain announced a Q3 update stating that the upcoming third quarter net gaming revenues to be lower than forecast to “high single digit percent” due to what the company says is softer-than- anticipated growth in both the Australia and Italian markets.

The early news saw Entain shares down 4.5% on Monday trading following the announcement which said on the website:

We now expect Group Online NGR for FY2023 to be up low double-digit percent with proforma NGR down low single digit percent.  We reiterate our expectations for FY2023 EBITDA to be in the range of £1.00bn-£1.05bn supported by robust operational controls.

Jette Nygaard-Andersen, CEO of Entain, commented:

“We continue to see good underlying growth in our online business and are reiterating our EBITDA guidance for the year despite softer than expected revenue growth in Q3 and the ongoing roll-out of industry-leading safer gambling measures.  We continue to attract more customers than ever before to enjoy our products and services.  BetMGM remains on track to deliver positive EBITDA in H2 and a full year NGR performance at the top end of our expectations, and we are particularly excited about the product improvements that we are rolling out over the NFL season.

We have made significant changes to the Group over the last three years.  Our focus now is on accelerating the actions we are taking to drive sustainable organic growth, expand our margins, capitalise on the US opportunity and deliver long-term returns for our shareholders.  We remain confident in our ability to deliver on the vast opportunities ahead of us, and look forward to sharing more detail about the changes that we are making alongside our Q3 trading update in November.”