Betting giant Entain raises projections for the year after stronger than expected performance

A stronger than expected performance in the third quarter of the year has led Entain to raise its earnings guidance for the year.

In a trading update issued on Thursday morning, the parent company of Ladbrokes and Coral said group ebitda (earnings before interest, taxation, depreciation and amortisation) for the year was now expected to be towards the top of the £1,040 million to £1,090 million guidance range.

Total group net gaming revenue (NGR), including Entain's 50 per cent share of US joint venture BetMGM, was up eight per cent during the period.

Online NGR growth was ahead of expectations, up ten per cent excluding the US, while the UK and Ireland division returned to year-on-year growth sooner than expected, with NGR up two per cent.

In the US BetMGM recorded an 18 per cent increase in NGR during the third quarter, which Entain said reflected an improved product and increased investment in player acquisition.

Seven primetime NFL fixtures from the season's first four weeks were among Entain's top ten most popular betting matches during the third quarter, although the top event was the UEFA European Championship final between England and Spain.

New Entain chief executive Gavin Isaacs

New chief executive Gavin Isaacs said: "My first few weeks as CEO of Entain have reaffirmed my view that this is a very good business operating in a highly attractive global industry. 

"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. 

"We are at the beginning of the journey and I’m looking forward to accelerating our progress, leading the business in our next growth chapter and capturing the many exciting opportunities ahead.”

The news comes after Entain's share price was hit earlier in the week following reports that the government was considering raising gambling duties in this month's budget.

Analysts at stockbrokers Davy described the update from Entain as "positive" but added that investors might "wait for some clarity that UK gambling taxes will not be changed on budget day".

The company's share price was up nearly five per cent at 747p on Thursday afternoon.

Meanwhile Unibet's parent company Kindred Group revealed its third quarter performance had been in line with expectations, with total revenue reaching £294.5m. 

The company is in the process of being taken over by French group Française des Jeux.

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