By Anthony O. Goriainoff
Entain, the renowned betting and gambling group listed in the FTSE 100, announced that its online net gaming revenue (NGR) has been weaker than expected due to unfavorable sports results impacting sports margins in September. However, the company reiterated its expectations for earnings before interest, taxes, depreciation, and amortization (Ebitda) for the year.
According to Entain on Monday, it is facing challenges in the form of prolonged regulatory headwinds, particularly in the United Kingdom. Additionally, growth in Italy and Australia has been slower than initially projected.
The company highlighted the success of BetMGM, its joint venture in the United States, which is on track to achieve positive Ebitda in the second half of the year. Furthermore, BetMGM is expected to generate net gaming revenue within the upper range of its guidance, ranging from $1.8 billion to $2 billion.
Entain estimates that its group online NGR will show a low double-digit percentage increase for the year. However, pro forma NGR is projected to decrease by a low single-digit percentage.
Despite these challenges, Entain expressed confidence in achieving Ebitda of £1 billion to £1.05 billion ($1.22 billion to $1.29 billion) for the year. The company attributes this outlook to its strong operational controls.
Entain emphasized its commitment to pursue sustainable organic growth, enhance profit margins, seize opportunities in the U.S. market, and create long-term value for shareholders.