Entain posts online gaming revenue ahead of expectations

Entain has today posted first-quarter online gaming revenue ahead of expectation, helped by an increase in customers even as the British gambling group grappled with stiff competition and regulatory pressures in its main markets.

Gambling companies have repeatedly flagged regulatory pressures, with Entain expecting its annual profit to take a hit from some regulations in the UK and Netherlands at a time when competition in online gaming has stiffened.

Entain, which is searching for a new CEO after the abrupt departure of Jette Nygaard-Andersen in mid-December, posted a 7% fall in total revenue in its largest market, UK and Ireland.

The owner of Ladbrokes, Coral and Partypoker said online net gaming revenue inched lower 2% on a proforma basis in the three months ended March 31, while total group net gaming revenue was up 6%.

Consensus provided by the company showed that analysts on the sell-side expected online net gaming revenue on a proforma basis to be down between 4% and 6%.