Entain: Double Digit Growth in Q3, BetMGM Top Performer in the U.S.
UK Gambling gian Entain announced its Q3 figures on Monday marking its 23rd consecutive quarter of double-digit online growth. Net gaming revenue was up 4% year-on-year.
Jette Nygaard-Andersen, Entain’s Chief Executive Officer said:
“These results demonstrate Entain’s continuing ability to deliver sustainable, consistent and diversified growth. Our powerful Entain platform provides customers with great products and experiences, which enables us to grow ahead of our markets.”
Online net gaming revenue was up 10% and all major markets, excluding Germany performed strong, particularly Australia and Brazil. Retail net gaming revenue was up 1%, with UK volumes recovering toward pre-pandemic levels, and European activity steadily coming back.
Nygaard-Anderson said that Entain’s total addressable market is expected to “more than triple” to over $160 billion, driven mainly by the US market opening up, growth plans in other new and existing markets, and the company’s strategy of entering into “new areas of interactive entertainment.” The CEO stated:
“We are now challenging for the number one market position.”
Entain’s partnership with MGM Resorts International for sports-betting and iGaming in the US, BetMGM, “continues to deliver strong growth”, with a 23% market share across the country during the third quarter. BetMGM is live in 16 jurisdictions and the “clear iGaming market leader” according to the press release.
The Entain Group is on the wishlist of many investors and other gaming rivals. The group, home to Ladbrokes and Coral, bwin and partypoker has recently received a takeover proposal from US rival Draftkings in a $22 billion deal that got waived.
Entain’s positive results for the BetMGM brand, displaying accelerating growth throughout Q3 make DraftKings’ interest in the business understandable and a takeover very attractive.
According to Reuters, under British takeover rules, DraftKings has until October 19th to either make a firm bid or walk away.
BetMGM seems to be the key determining factor in Entain’s valuation. MGM Resorts CEO Bill Hornbuckle confirmed MGM’s intention to secure majority control over BetMGM after the DraftKings proposal. in the event that DraftKings successfully purchases Entain, MGM will opt for a majority takeover of BetMGM with the goal of accessing the unit’s technology and maintain operating in the U.S. online market.
Hornbuckle said the Resorts Group hold 50% now and that “I would like more. I would need more.”
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Author: Peter Siu