Affordability checks and sports results continue to bite at Ladbrokes Coral owner Entain

Affordability checks and sports results continue to hit revenues at Entain, the owner of Ladbrokes and Coral said on Thursday.

In a trading statement for the third quarter of the year, Entain said that online net gaming revenue (NGR) had fallen by six per cent on a pro forma basis (excluding acquisitions) due to regulatory measures such as affordability checks.

Punter-friendly sports results in September provided a two-to-three percentage point impact and Entain said they had continued to drag on performance into the fourth quarter. Entain said that during October, sports results had impacted Ebitda (earnings before interest, taxation, depreciation and amortisation) by around £45 million.

The company added that it had only recorded three losing weeks on football since 2019 and two of those had taken place at the end of last month.

Total group NGR, including the United States, was up seven per cent for the period.

Punters and the racing industry are being called on to sign a petition calling on the government to stop the implementation of affordability checks. You can sign the petition here.

Entain said its US joint venture BetMGM continued to perform strongly with NGR of approximately $458m (approx £376m/€432m) in the third quarter, up around 15 per cent year on year.

BetMGM has an 18 per cent market share in the states in which it operates, excluding New York, with a 26 per cent market share in igaming.

The company also said its retail division had produced a "robust" performance, with NGR up four per cent but still down four per cent on a pro forma basis.

Entain said it expected online NGR to return to growth in the second half of 2024 and outlined a number of strategic initiatives including prioritising high-growth markets such as the US and Brazil while exiting smaller non-core operations.

It also plans to make cost savings of £100m by 2025 as part of 'Project Romer', which will also include "simplification" of the organisation.

Entain chief executive Jette Nygaard-Andersen

Chief executive Jette Nygaard-Andersen said: "Entain has undergone a profound transformation over the last few years, and now has strong foundations from which to move into its next phase of growth.

"We have made significant investments in responsible gambling initiatives. While these steps have impacted Ebitda, they are unquestionably the right thing to do to improve our long-term prospects.

"From here, we have a clear plan to focus our portfolio for organic growth, drive our market share in the US, improve our operational leverage, and increase our Ebitda margins.

"The wide range of initiatives that are under way will cement our position as a customer-focused industry leader, enable us to achieve our strategic ambitions, and deliver enhanced returns for all our stakeholders."

David Brohan, gaming and leisure analyst at stockbrokers Goodbody, said Entain's trading in the third quarter was in line with expectations, but described the impact of sports results in October as "disappointing".

Entain's share price had fallen to 884.4p at close of trading on Thursday, down 55.6p.

Read these now:

Gambling giant Entain gives revenue warning as stricter regulations continue to bite 

Ladbrokes and Coral owner Entain sets aside £585 million to settle HMRC bribery investigation 

Do you want £400+ of free bets? Racing Post have got the best offers, all in one place. Visit racingpost.com/freebets to find out more.