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Entain navigates Q3 challenges, outlines FY23 guidance and future strategy

Industry giant Entain has released an update on its current trading performance and FY2023 guidance, along with insights into the strategies to enhance operational performance.

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Post-summer, online net gaming revenue (NGR) at Entain showed mixed performance across the group, falling softer than anticipated overall. Q3 online NGR growth is expected to be up a high single-digit percentage but down a high single-digit percentage on a proforma basis.

The company says various factors contributed to these numbers, including adverse sporting results affecting sports margins in September, ongoing regulatory challenges, and slower-than-expected growth in Australia and Italy markets. 

Despite these challenges, certain aspects of Entain's performance remained positive, according to the operator.

Additionally, its recent acquisitions, including SuperSport, Retail and BetMGM demonstrated 'robust' performance, with the latter expected to achieve positive EBITDA in the second half of 2023. 

Entain now anticipates that group online NGR for FY2023 will experience low double-digit percentage growth, with proforma NGR expected to decline at a low single-digit percentage rate. 

However, despite the revenue challenges in Q3, the company maintains its FY2023 EBITDA guidance in the range of £1bn to £1.05bn ($1.22bn to $1.28bn), supported by operational controls. 

Jette Nygaard-Andersen, CEO of Entain, acknowledged the challenges faced, particularly the softer revenue growth in Q3.

“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,” adds Nygaard-Andersen. 

“We have made significant changes to the Group over the last three years. Our focus now is on accelerating our actions 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.”

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