Ladbrokes owner Entain sees growth slow after punter-friendly sports results
Ladbrokes owner Entain has blamed a run of customer-friendly sports results for slowing growth over the summer.
The group, which also owns brands including Coral and Sportingbet, said total group net gaming revenue (NGR) โ the amount of money the company pockets after paying out winnings to customers โ increased by 7% at constant currencies, slowing from 10% growth in the first half of the year.
It said this included an impact of between one and two percentage points due to adverse sports results in September.
But the group stuck by its full year guidance for underlying earnings of between ยฃ1.1 billion to ยฃ1.15 billion despite the hit.
The firmโs US joint venture, BetMGM, also served as a bright spot once again as it upped its annual outlook after recording a better-than-expected increase in revenue of 23% to 667 million US dollars (ยฃ499 million) in the third quarter.
BetMGM, in which Entain has a 50% stake along with US casino giant MGM Resorts International, said it now expects to deliver net revenues of at least 2.75 billion US dollars (ยฃ2.06 billion) and underlying earnings of around 200 million US dollars (ยฃ150 million).
But shares fell 2% in morning trading on Wednesday.
Stella David, chief executive of Entain, said: โEntainโs transformation continues at pace.โ
She added: โWhilst we still have more to do, our third quarter performance is further evidence of the quality of our diverse business and its underlying momentum.โ
Entain said UK and Ireland NGR rose 8% year-on-year at constant currency, with online growth of 15% and retail up 2%.
International NGR rose 1% at constant currency, with online volume growth of 5%, which was largely offset by customer friendly sports results in September, according to the firm.
Ms David โ former chairwoman at Entain โ was confirmed earlier this year as permanent chief executive, having taken on the role on an interim basis when Gavin Isaacs resigned in February after just five months in the role.
The group has now had four bosses in the past five years.
