Entain plc (ENT.L) reported strong Q3 results. It surpasses expectations and prompting an upward revision of its 2024 outlook. The company has seen significant growth in both the United Kingdom and international markets, with Group NGR (Net Gaming Revenue) rising 6% on a pro forma basis.
Key takeaways include the UK online business returning to positive year-on-year growth, achieving 6% NGR growth. Brazil maintained sturdy momentum with 48% growth in both second quarter and third quarter. BetMGM showed an 18% NGR increase. With online NGR growth at 9%, NGR rose 6% on a pro forma basis. Expecting mid-single-digit online NGR growth ex-US, 2024 outlook revised upward.
The Company Outlook anticipates mid-single-digit growth in online NGR not including the US for this year. EBITDA is expected to reach the upper end of the £1,040 million to £1,090 million range. Forecasts return to year-on-year growth in organic EBITDA in constant currency. Online EBITDA margins for this year is expected at the top end of the recently guided range.
The Bullish Highlights strong performance in the United Kingdom, as well as international markets. Brazil’s continued strong growth. The promising signs of BetMGM goes with 18% NGR increase. Growth of Australia went from 5% in the second quarter to 8% in the Q3. Double-digit grows in the United States iGaming and online sports betting.
Bearish Highlights the potential tax increases in the United Kingdom budget. The anticipated regulatory challenges in Brazil. There is an expected decline in Netherlands because of new deposit regulations. Starting this quarter, there is a slow year-on-year growth.
The Q&A highlights that Caesars (NASDAQ: CZR) is reportedly developing a single account, single wallet solution for Nevada that will launch next year. The company has planned a $750 million marketing budget for BetMGM player acquisition. They are evaluating consolidation opportunities in the Italian market. Brazil’s regulatory progress has gained confidence. Next year, the goal is to achieve growth in the United Kingdom market across all segments.
