Entain, the global sports betting and gaming group, delivered a better-than-expected performance in the UK during the third quarter and stuck to its full-year financial targets.
UK and Ireland online net gaming revenue (NGR), the key measure of gambling turnover after payouts, rose 14% in the three months to September, ahead of the company's own expectations.
Group NGR grew 2% on a constant currency basis over the period, with online NGR up 3%, as strong gaming growth of 8% was partly offset by customer-friendly sports results.
The company reiterated its forecast for full-year online NGR growth of between 4% and 6%, with underlying earnings before interest, tax, depreciation and amortisation (EBITDA) expected at the lower end of a £910 million to £960 million range.
Excluding Brazil, where an immediate ban on online gambling was announced on 25 September, online NGR growth in the quarter was 5%, and Entain expects full-year growth at the top end of a 5% to 7% range on that basis.
The group said the sale of an initial 20% stake in its central and eastern European (CEE) business, Entain CEE, to joint venture partner EMMA Capital remains on track to complete during the fourth quarter.
New Zealand, Spain and Canada all delivered double-digit online NGR growth, helping to offset weakness in Italy and ongoing headwinds in Brazil.
US joint venture BetMGM separately reconfirmed its guidance for net revenue of $2.9 billion to $3.1 billion for the full year, with adjusted EBITDA of $300 million to $350 million, both expected towards the lower end of those ranges.
Chief executive Stella David said the quarter reflected "the strength of our execution and the resilience of our globally scaled business."
She also used the update to warn the UK government against further gambling tax increases, saying they would "threaten the viability of many shops, jobs and livelihoods."
Entain said it continues to expect the group to generate £500 million of annual adjusted cash flow in 2028.
