Entain, owner of Ladbrokes, reports decline in online revenues due to ongoing regulatory challenges

Entain reported a seven percent decrease in net gaming revenue (NGR) in the United Kingdom and Ireland, with online NGR down by nine percent and retail NGR down by six percent. The company attributed this decline to the ongoing impact of regulatory changes. In March, Entain had issued a warning that these regulatory changes, including affordability measures, were expected to continue affecting earnings, projecting a £40 million impact by 2024.

However, Entain expressed optimism in its latest update, citing operational improvements and the “levelling of the UK regulatory landscape” as positioning its brands for growth into 2025. The total group NGR, incorporating Entain’s 50 percent share in US joint venture BetMGM, saw a six percent increase in constant currency, but a three percent decrease on a pro forma basis when considering the company’s acquisitions from the previous year. Group online NGR, excluding the US, experienced a two percent decrease despite an 11 percent growth in active customers.

BetMGM posted a two percent rise in NGR for the first quarter and maintained a 14 percent share in sports betting and iGaming in its operating markets. Stella David, the interim chief executive, noted that Entain’s first-quarter performance aligned with expectations, acknowledging strong performances in certain markets while confronting challenges in others. She highlighted the level of customer engagement in the US after successful events like the Super Bowl and March Madness, as well as growth in Brazil following implemented changes.

David also emphasized the company’s progress in advancing operational performance and its strategic priorities of organic revenue growth, margin expansion, and success in the US.