Gambling group Entain has upgraded its guidance after popular sports matches helped it grow its gaming revenue and deliver a stronger than expected performance in the third quarter
The owner of Ladbrokes and 888casino said total net gaming revenue (NGR) grew eight per cent in the three months to 30 September, including its 50 per cent stake in its North American division, BetMGM.
Online NGR jumped 10 per cent, excluding the US, as the UK and Ireland returned to year on year growth ahead of expectations.
It comes after a sport-heavy period drew in more punters. The top ten most popular betting matches during the period included the final three Euro 2024 knockout fixtures and seven TV prime-time NFL fixtures from the season’s first four weeks.
As a result, the bookie has upgraded its guidance for its full year 2024. It now expects mid single-digit proforma constant currency growth in online NGR, up from low single digit figures.
Entain has also guided group earnings before interest, tax, depreciation and amortisation (EBITDA) towards the high end of the £1.04bn to £1.09bn range.
New Entain boss Gavin Isaacs said his first weeks as chief executive have “reaffirmed my view that this is a very good business operating in a highly attractive global industry.”
He continued: “Entain has great brands, an enviably diverse global portfolio and is bursting with talent, ambition and opportunities. Entain is already on a path of strategic and operational improvement, with the strong Q3 performance demonstrating the progress achieved so far.”
Shares in British gambling firms plunged on Monday morning on reports that the government was plotting a £3bn tax raid on the sector.
Entain took a seven per cent hit to its stock price, wiping over £3bn in total off the UK gambling sector’s market cap in just a few hours of trading.
William Hill-owner Evoke saw its share price crater by over 13 per cent in morning trading, while shares in Flutter, which owns brands like Paddy Power and Sky Bet, dropped by six per cent.