Entain plc Q1 2023 Financial Performance: A Comprehensive Analysis

Entain Q1 2023: Strong financial start, 15% NGR growth, record active customers, 28% iGaming market share; concerns: UK & Germany regulations. (Image by PublicDomainPictures from Pixabay)

Entain’s Q1 2023 financial figures showcase a strong beginning to the year, with the company delivering both financially and strategically. The following table provides a comparison of the quarterly figures mentioned.

Known as a staunch partner of Evolution Gaming across the globe, and its partnerships with some of the biggest online casinos in the UK its huge market cap of £8.43 billion market cap as a London Stock Exchange-listed company, Entain (ENT:L) has had some interesting times over Q1, and just before. The company is also up there with 888 Holdings (888:L), Playtech (PTEC:L), Flutter (FLTR:L) and Gaming Realms PLC (GMR:L) all also listed on the London Stock Exchange.

Summary of Q1 Financial Results

Entain plc, a leading player in the global sports betting, gaming, and interactive entertainment industry, has reported a strong start to 2023 with record numbers of active customers. The group’s Q1 net gaming revenue (NGR) grew by 15% (11%cc1) year-on-year, meeting expectations.

When accounting for its 50% share of BetMGM, Q1 NGR saw an increase of 17%cc1. The company’s online NGR experienced a 16% (+11%cc1) growth, reflecting solid momentum, while Q1 online NGR rose by 1%cc1. Excluding the known regulatory impacts in the UK and Germany, online NGR increased by 6%cc1 proforma. The company also reported robust performance in retail, with Q1 NGR surging by 14% (+13%cc1).

Positive Takeaways from Q1 Results

Entain’s Q1 results reveal several positive aspects, including record levels of active customers, which highlight the group’s strong customer focus and diversification. BetMGM continues its impressive growth trajectory, aligning with guidance, while the company’s consistent iGaming leadership is evidenced by a 28%3 market share.

Entain holds a prominent position among leading operators with a 17%2,3 share in sports-betting and iGaming markets where BetMGM operates.

Reference Points for Entain Financial Figures

• Constant currency (cc) growth rate.
• Entain’s market share in sports-betting and iGaming markets where BetMGM operates.
• Entain’s market share in the iGaming industry.
• Entain’s expected EBITDA delivery in the second half of 2023

What Other New Has Been Coming Out of the Entain Camp over Q1 2023

The company launched its safer gambling NFT in December and appears to have recovered from its £17 million fine issued by the UKGC. At the time the largest of its kind dished out to a UK online gambling company. That has since been beaten by William Hill owned by 888 Holding, which landed a huge £19.4 million fine.

However, the news covering Entain that went the most viral was the offer that came in from DraftKings for £14.5 billion. It saw Entain’s stock price skyrocket, but since DrafKings has withdrawn sending the stock ENT:L’s value tumbling below its year open price. Since then, though, the price has recovered.

This may have been thanks to a 25-year strategic partnership deal with TAB, a company well-known in the Australian and NZ gambling markets.

Are there Areas of Concern with the Entain plc Q1 2023 Financial Results?

Despite the overall positive performance, there are a few concerns about Entain’s Q1 results. Online NGR in Q1 increased by only 1%cc1, and the known regulatory impacts in the UK and Germany have negatively affected online NGR, resulting in a proforma growth of just 6%cc1. However, the company’s successful Super Bowl and March Madness events, accompanied by strong customer acquisition throughout the

Entain’s CEO, Jette Nygaard-Andersen, expressed confidence in the company’s strong start to 2023, emphasizing the underlying momentum across its global operations. She also stressed the company’s commitment to customer focus, diversification, and its proven ability to grow organically and through M&A.