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LONDON - Entain plc (LSE:ENT), a leading global sports betting and gaming group, announced a strong start to fiscal year 2025 with its first-quarter Group Net Gaming Revenue (NGR) surpassing expectations. The company reported on Tuesday that including its 50% share of U.S. joint venture BetMGM, total Group NGR increased by 9%, or 11% on a constant currency basis.
The positive performance was attributed to robust online operations, with Entain and BetMGM’s online NGR, including U.S. contributions, climbing 12%, or 15% in constant currency. Entain’s online NGR excluding the U.S. saw a rise of 6%, or 10% on a constant currency basis, primarily driven by strong volumes in the UK and favorable sports results.
Stella David, recently appointed as CEO of Entain, expressed optimism about the company’s trajectory, citing the results as evidence of successful strategic execution. She emphasized Entain’s portfolio in regulated growth markets and the company’s potential for high-quality, sustainable earnings, projecting over £0.5 billion in annual cash flow in the medium term.
In the UK and Ireland, NGR increased by 10% on a constant currency basis, with online NGR up 23%, outperforming expectations due to significant volume growth. Internationally, NGR rose by 5% on a constant currency basis, with Brazil’s NGR up 31%, aligning with expectations, while Australia’s NGR decreased by 8% due to customer-friendly sports outcomes.
BetMGM’s first-quarter performance was stronger than anticipated, with NGR up 34% on a constant currency basis year-over-year, bolstered by its iGaming offering and improved sports product. The joint venture is on track to achieve EBITDA positivity within the fiscal year.
Looking ahead, Entain reiterated its forecast for mid-single-digit percent growth in Online NGR for 2025 on a constant currency basis and is comfortable with the market’s EBITDA expectations for the fiscal year. The company’s confidence is supported by year-to-date trading, including strong online volume growth and favorable sports margins in the first quarter.
This report is based on a press release statement from Entain plc.
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