Entain Q3 NGR up 2% as UK growth offsets Brazil impact

Entain has reported a two per cent increase in group net gaming revenue (NGR) for the third quarter of 2023. The modest growth was supported by a three per cent rise in online NGR, while retail NGR experienced a two per cent decline across the group. The results highlight a period of contrasting regional performance for the operator.

UK & Ireland performance buoys group results

The company’s UK and Ireland division was a key driver of growth, posting an eight per cent increase in total NGR for the quarter. This was primarily fuelled by a strong online performance, where NGR surged by 14 per cent. The retail estate in the region also showed resilience, with like-for-like NGR up three per cent. When accounting for shop closures, UK and Ireland retail NGR still recorded a one per cent rise.

For the nine months to the end of September, the UK and Ireland division’s total NGR was also up eight per cent. Over this period, online NGR grew by 13 per cent and retail NGR increased by one per cent.

International headwinds and Brazilian ban

In contrast, Entain’s international operations faced significant headwinds, with overall revenue for the segment falling by four per cent in Q3. A major factor in this decline was a 36 per cent drop in NGR from Brazil. The company noted this was a direct result of its compliance with an online gambling ban that came into effect in the country on 25 September.

Performance in other key international markets was mixed. In Italy, total NGR decreased by six per cent, with the decline spread across both online, which fell by five per cent, and retail, which dropped by eight per cent. Meanwhile, the Australian online market delivered a marginal one per cent increase in NGR for the quarter.

Group outlook and future guidance

Across the entire group for the nine-month period, net revenue was up four per cent, with online NGR growing five per cent and retail revenue remaining flat. The operator also provided updated guidance for its future performance. For the full year 2026, Entain anticipates online NGR growth to be in the range of four to six per cent. This forecast improves to between five and seven per cent when excluding the Brazilian market.

The company also expects its FY26 Underlying EBITDA, before accounting for parent fees from its BetMGM joint venture, to land at the lower end of its previously stated £910m to £960m range. Looking further ahead, Entain has set a long-term financial target. The group, including its 47.5 per cent minority stake in Entain CEE, is projected to generate £500m of annual adjusted cashflow by the year 2028.