Entain enjoys strong start to 2023 with record numbers of active customers

The parent company of Ladbrokes and Coral has enjoyed a strong start to 2023 according to a trading update published on Tuesday, reporting a record number of active customers in the first quarter of the year.

Entain said group net gaming revenue (NGR) for the first three months of the year was up 11 per cent in constant currency, driven by strong performance in both online and in retail, and up 17 per cent once its 50 per cent share in US operator BetMGM was included.

Online NGR rose by 11 per cent, although on a pro forma basis the increase was one per cent. That still represented a return to growth compared to a one per cent fall in 2022 and would have been a six per cent increase excluding the impact of regulation in the UK and Germany.

Chief financial officer Rob Wood told analysts the effect of affordability measures had resulted in an net revenue fall of "low single digits" year-on-year for online in the UK. The number of active customers was 19 per cent higher than the previous year, while retail NGR was up 13 per cent.

Entain's US joint venture BetMGM recorded first quarter NGR of around $470 million (approx £379m/€429m), up by 76 per cent and in line with guidance for the full year of $1.8-$2 billion.

The company said BetMGM had a 17 per cent share in the sports betting and iGaming markets in which it operates and was on track to become profitable in the second half of 2023.

Entain chief executive Jette Nygaard-Andersen: "We are delivering both financially and strategically"

Chief executive Jette Nygaard-Andersen said: "2023 is off to a strong start, with continuing underlying momentum across our operations around the world. We are delivering both financially and strategically, with a record number of active customers enjoying our products, and we are executing on growth opportunities to further diversify and expand across regulated markets. 

"In the US, BetMGM continues to grow in line with expectations and enjoyed a successful quarter which included the Super Bowl and March Madness. 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."

David Brohan, gaming and leisure analyst at stockbrokers Goodbody, said Entain had "delivered a strong start to the year in line with our expectations".

The company's shares were more than two per cent higher at 1,337p by Tuesday lunchtime.

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