Entain’s Q1 NGR climbs 11% as BetMGM set to be in the black later this year
Super Bowl and March Madness key drivers of growth for the business in strong start to 2023
Entain has recorded an 11% year-on-year (YoY) rise in Q1 2023 net gaming revenue (NGR) on a constant currency (cc) basis along with significant improvement in its US-facing JV, BetMGM.
BetMGM delivered Q1 NGR of around $470m, up 76% YoY and in line with full-year 2023 guidance of between $1.8bn and $2bn.
Entain, which owns a 50% share in BetMGM with JV partner MGM Resorts, added that customer acquisition was strong during the quarter, mainly thanks to the Super Bowl and college basketball’s March Madness.
BetMGM did see its igaming market share slip from 29% to 28% during the quarter, while its sports betting share in markets it operates in sits at 17%.
Entain confirmed BetMGM remains on track to deliver positive EBITDA in H2 2023.
Entain CEO Jette Nygaard-Andersen said the year was off to a “strong start” as the Dane praised the group’s underlying momentum across the globe.
She said: “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,” the CEO added.
Elsewhere, total online NGR jumped 11% (cc) in the first three months of the year, with the group’s gaming segment returning a 20% increase in NGR. Online sports remained flat with a 2% NGR uptick.
Entain said the online NGR rise was “in line with expectations and [was] demonstrating strong momentum” for the group.
However, on a pro forma basis, online NGR only increased by 1% (cc) YoY. The multi-brand firm noted that when discounting the known regulatory impacts in the UK and Germany, pro forma online NGR was up 6% (cc).
There was also a record level of active customers for the company in the first three months of the year, up 19% on Q1 2022.
Retail NGR jumped 13% as Entain continues to reap the benefit of the return to normality following the pandemic.