Last week, Entain posted a positive Q3 trading statement, in which the gambling group cited confidence in achieving the year-one objectives of its corporate reorganisation.
On the latest episode of iGaming Daily, Martyn Elliott, SBC’s Project Director, was joined by Ted Menmuir, SBC’s Content Director, and Conor Porter, Senior Journalist for CasinoBeats, to delve deeper into the results.
A particularly strong area of growth for the firm was BetMGM – Entain’s joint venture brand with MGM Resorts International in the US – which experienced net gaming revenue growth of 18% year-over-year, outstripping the 8% overall increase during the quarter.
On the growth in the US, Conor said: “[Entain] said that they’ve seen an encouraging start to the second half of 2024 after achieving Q3 NGR growth. But as it has been throughout the year for BetMGM, it’s still an investment year in 2024 [as it] looks to improve marketing and player experience.
“Rob Wood [Entain’s CFO and Deputy CEO] emphasised that it’s still very much early days but they are seeing the benefits from the Angrstom capabilities to help drive parlay betting and gross gaming revenue across the sports of baseball, basketball and the NFL and college football.
“On top of that, they mentioned igaming revenue was at a record high in Q3, with first-time deposits up 70% and strong online sports betting to gaming cross-sell in the NFL season to date. So it’s looking like a good positive direction for BetMGM.”
Ted added that another area that Entain highlighted as a positive in Q3 was Australia where its Ladbrokes brand is “outperforming market rivals and maintaining growth ahead of the competition”.
“It’s been a tough 18 months for the Australian markets with a lot of regulatory alignment across states,” explained Ted.
“[However] Entain actually views the market as very soft in which it can take significant market share from retail incumbents. By that, it means it has eyes on Tab out there and it is saying that it can take considerable or quick market share from them.
“It throws another variant into its 2025 strategy about how hard it will push in Australia but it’s definitely an opportunity for them.”
To end the episode, the trio considered – taking into account these latest results – whether Entain has had a good or bad 2024.
Ted and Conor both agreed that the answer to this question will hinge on how Entain performs in the final quarter of the year.
Ted said: “I think refreshingly for Entain, what we’ve seen is that [newly-appointed CEO Gavin Iscaacs] is trying to change the narrative of Entain as a company.
“One of the things that he’s been very clear on is that he’s not just prioritising BetMGM above other brands. He wants Entain to operate as a technology company and improve its product synergies and leverage across all brands and all markets.
“One of the things that Isaacs has to prove is that Entain has moved on and moved beyond its foundations of just being a company that was founded as an M&A vehicle and that it’s now a dynamic Plc that can compete in the disciplines that are valued by investors.”
