Entain eyes number one spot in the US as markets wait for news on DraftKings bid

Entain, the parent company of Ladbrokes and Coral, is challenging to be the number one operator in the US, according to its latest trading update issued on Tuesday.

However, chief executive Jette Nygaard-Andersen said there was nothing to add to previous comments on the $22.4 billion (£16.4bn) takeover proposal it is considering from US company DraftKings.

Entain said that BetMGM, its joint-venture in the US with MGM Resorts International, had continued to deliver strong growth, with a 23 per cent market share across the US in sports betting and iGaming for the three months to August.

The company claimed US industry data for the month of August showed BetMGM challenging for the number one market position across sports betting and iGaming.

Entain chief executive Jette Nygaard-Andersen

Nygaard-Andersen said: "As we announced on August 12, our total addressable market is expected to more than triple to over $160bn.

"This will be driven by the significant opportunity in the US, where we are now challenging for the number one market position, our growth plans in other new and existing markets, and our strategy of entering into new areas of interactive entertainment."

DraftKings has until October 19 to make a formal bid for Entain but Nygaard-Andersen told analysts it would not comment further, other than that the company was "carefully considering the proposal" and that it would come back to the markets "as and when appropriate".

Entain said it had recorded its 23rd consecutive quarter of double-digit online growth in the third quarter of 2021, with online net gaming revenue (NGR) increasing by ten per cent.

Excluding Germany, where the market has been impacted by a new regulatory regime, the figure was 18 per cent, although chief financial officer Rob Wood told analysts Entain would "inevitably" be unable to continue the run of double-digit growth due to tough comparisons with the fourth quarter of 2020.

Group NGR was up by four per cent, while retail NGR rose by one per cent during the period, with betting shop volumes in the UK reported to have reached more than 90 per cent of pre-Covid-19 levels.

Nygaard-Andersen said: "These results demonstrate Entain’s continuing ability to deliver sustainable, consistent and diversified growth.

"Our powerful Entain platform provides customers with great products and experiences, which enables us to grow ahead of our markets as demonstrated by 23 consecutive quarters of double-digit online growth."

Entain said that group earnings for 2021 were expected to be in line with previous guidance of £850 million to £900 million, and Nygaard-Andersen added: "We remain very confident in Entain’s future prospects."

Analyst Gavin Kelleher of stockbrokers Goodbody described the figures from Entain as "another positive update", adding that "the group remains in good shape".

Entain's share price closed down 1.66 per cent at 2,073p on Tuesday.

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