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  • Q1 2024: Entain reports mixed results as group NGR grows 6%
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Entain’s net gaming revenue (NGR), including its 50% stake in BetMGM, grew 6% year-on-year in Q1 2024 on a constant currency basis.

However, when considering the figures on a pro-forma basis (also in constant currency, but reported as though the businesses acquired in 2023 had been part of Entain since the beginning of the year) NGR fell by 3%. 

Despite the decline, Entain said the performance was in line with its expectations.

Online NGR excluding the US market increased 9% year-on-year on a constant currency basis, but fell 2% on a pro-forma basis, despite 11% growth in the number of active customers.

Retail NGR remained flat on a constant currency basis, but experienced a 5% year-on-year decrease on a pro-forma basis.

Geographical breakdown

In its largest market, the UK & Ireland, Entain saw a year-on-year decrease of 7% in total revenue. 

Attributing this decline primarily to regulatory changes, the operator reported a 9% decrease in online NGR and a 6% decrease in retail.

However, Entain remained optimistic about its future prospects, citing ongoing operational improvements and a more stable regulatory environment in the UK as factors that will position its brands for growth through 2025.

International NGR showed a positive trend, increasing by 8% on a constant currency basis year-on-year, but decreasing by 2% on a pro-forma basis overall. 

While many markets performed well, softness in Australia, the Netherlands and Germany partially offset the gains.

Entain also highlighted a return to year-on-year growth in Brazil, driven by operational enhancements initiated in 2023.

Entain’s Central and Eastern European (CEE) segment continued its strong performance, with NGR up 11% year-on-year on a pro-forma basis.

The operator said SuperSport in Croatia particularly stood out with robust performance.

BetMGM, Entain’s joint venture in the US market, reported a 2% year-on-year increase in Q1 NGR, as it secured a 14% market share in sports betting and iGaming where it operates.

Although customer-friendly win margins impacted NGR, Entain said it observed strong growth in customer acquisition, mostly during events like the Super Bowl and March Madness.

Additionally, ongoing improvements in its app and product capabilities are enhancing the player experience, according to Entain.

CEO comments

“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,” Entain interim CEO Stella David said. 

“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. 

“We look forward to building on this momentum as we focus on our strategic priorities of organic revenue growth, margin expansion and winning in the US.”

David said the group remains confident that its continued “focused execution will drive organic growth into 2025 and beyond.”

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