Overview of Entain’s First Quarter Financial Report
Entain, a prominent player in the gaming and entertainment industry, has released its financial results for the first quarter of 2024. The report highlights various key metrics, including net gaming revenue (NGR) growth across different segments and regions.
Total Group Net Gaming Revenue (NGR) Growth
Entain’s total group NGR, which includes its 50% stake in BetMGM, showed a 3% increase year-on-year. When considering constant currency (CC) basis, the growth improved to 6%.
Central and Eastern Europe (CEE) Segment
The CEE segment exhibited exceptional growth for Entain. The reported NGR surged by an impressive 124%, escalating further to 130% on a constant currency (CC) basis. Both online and retail sectors contributed significantly, with over 100% growth rates in NGR. Specifically, online NGR soared by 133% on a CC basis, while retail experienced a commendable 116% growth on the same basis. Gaming NGR rose by 30%, whereas sports NGR, reported only on a pro forma CC basis, increased by 6%.
Pro forma CC Results
Pro forma results include all acquisitions from 2023 as if they were part of the company from the start of that year. Notably, the UK and Ireland segment witnessed a decline of 9% in online NGR and 6% in retail NGR. The overall NGR for this segment fell by 7% across reported, CC, and pro forma CC results.
International Performance
International NGR saw an 8% increase on a CC basis but declined by 2% on a pro forma CC basis. Excluding the US, Entain experienced a 6% increase on a CC basis but dropped by 3% on a pro forma CC basis.
Market Response and Stakeholder Comments
Entain’s stock price rose by 3% following the release of these financial results. Interim CEO Stella David expressed satisfaction with the progress made towards accelerating Entain’s operational performance. She emphasized ongoing efforts to enhance products, operational efficiency, and organizational agility.
Entain’s Q1 2024 financial results depict a nuanced picture of growth and decline across different regions and segments. While some areas like Central and Eastern Europe showcased outstanding performance, others faced challenges. The company’s strategic focus on operational improvements and product enhancements underscores its commitment to sustained growth in the coming years.