Financial results

Entain's sees net gaming revenue up 15% in Q1, driven by BetMGM's strong performance and growth across all segments

Jette Nygaard-Andersen, Entain's CEO.
Reading time 1:46 min

Sports betting and gaming group Entain has reported a 15% increase in net gaming revenue (NGR) for the first quarter of 2023, compared to 12% for the whole of last year. Strong growth within the BetMGM business helped to push net gaming revenue up during the quarter, while the group also reported growth across all other segments.

According to the report, BetMGM grew NGR 76%, with a 28% iGaming market share and a 17% share in sports betting and iGaming markets where it operates. BetMGM's NGR was up 94% to approximately $470 million, in line with guidance of between $1.80 billion and $2.00 billion in revenue for the full year.

Jette Nygaard-Andersen, Entain's CEO, said there was "continuing underlying momentum across our operations around the world" and highlighted a record number of active customers using the group's products.

"Looking ahead, we remain confident that our customer focus, diversification, and proven ability to grow organically and through M&A will enable us to demonstrate further progress against our strategy," she said.

Jette Nygaard-Andersen, Entain's CEO

BetMGM remains on track to deliver positive earnings before interest, tax, depreciation, and amortization (EBITDA) in the second half of 2023, based on its ongoing performance. Excluding the US, total online NGR was up 16%, with online gaming NGR jumping 25% year-on-year and internet sports betting NGR up 8 million.

Entain also noted record levels of active customers in Q1, with this figure rising 19%. The company shares rose 2.5% to 1,337.5p in early trading.

During the quarter, the company agreed to a long-term strategic deal with TAB New Zealand, the sole holder of a betting license in New Zealand, and completed its acquisition of Dutch operator BetCity for €450 million. Entain also agreed to purchase Tiidal Gaming NZ, the company behind esports betting developer Sportsflare.

In addition, Entain announced it would exit any markets "where it no longer sees a path to domestic regulation." In 2020, the group set out plans for all revenue to come from locally regulated markets and said it intends to be 100% regulated by the end of 2023. While it withdrew from many unregulated markets in the following years, it remained in certain jurisdictions it described as "regulating," such as Brazil.

Entain said it would "accelerate this process by exiting its few remaining markets where there is no clear path to market liberalization via domestic regulation." However, it will remain in "a small number of markets where it expects changes in regulation will enable it to obtain domestic licenses in due course."

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