Source: Sharecast
Updating on trading, the owner of Coral, Ladbrokes, Foxy Bingo and Gala, among others, said total net gaming revenues (NGR) rose 6% in the three months to 30 September, or by 7% in constant currencies.
NGR are the company's revenues once any winnings have been paid out.
In the UK and Ireland, NGR sparked 8%, while in the US - where Entain has a joint venture, BetMGM, with MGM Resorts International - net revenues surged 23%, ahead of expectations.
Online NGR outside of the US were up 5%, which Entain said reflected "continued underlying momentum, despite customer-friendly sports margins in September".
As a result, the blue chip said it remained on track to meet full-year forecasts for group earnings before interest, tax, depreciation and amortisation of between £1.1bn and £1.15bn.
Full-year online NGR growth is expected to be 7% in constant currencies, or mid-single digit on a reported basis.
Stella David, chief executive, said: "Entain’s transformation continues at pace, with our strategic execution and expanding bandwidth delivering growth across our portfolio.
"BetMGM’s continued success and strong year-to-date performance is driven by our strengthened sports product and leading iGaming offering.
"With Entain becoming ever stronger and BetMGM growing profitability, we are increasingly confident in delivering consistent underlying growth and generating more than £500m of annual cash from 2028."
David, Entain’s former chair, was formally appointed chief executive in April. She is looking to the US to bolster Entain’s long-term financial performance.
She is also seeking to rebuild investor confidence following a difficult period for the group, after it was hit by regulatory changes and corporate governance concerns.
As at 0915 BST, shares in Entain were down 1% at 827p.
Shore Capital, which has a ‘buy’ rating on the stock, called the update “encouraging”, despite September’s poor sporting results weighing on growth.
It continued: “Underlying digital momentum remains robust and in line with full-year assumptions – although the market may have been hoping for a touch more.
“All in, a solid enough statement, although the forthcoming Budget looms large.”
Smaller rival Rank also flagged uncertainty around possible tax changes in the Budget when it updated on trading on Tuesday.
Chancellor Rachel Reeves is facing a number of headwinds – including sluggish economic growth, vast government spending and higher borrowing costs – and most agree tax rises are now likely unavoidable.
