Entain shares nosedive as Ladbrokes owner’s revenues suffer
- Firm said it anticipates third-quarter online net gaming revenue to be down
- It expects this will be a ‘high single digit percent’ on a pro-forma basis
Entain shares nosedived after the firm warned revenues will be weaker than expected this quarter amid tougher regulatory headwinds and slower trade.
The FTSE 100 Ladbrokes owner expects a ‘high single digit percent’ decline in third-quarter online net gaming revenue on a pro-forma basis, it told shareholders on Monday.
The Gibraltar-based company also expects group online gaming revenue for the full year to be down by ‘low single digit percent’ on a pro-forma basis.
The FTSE 100 gambling giant revealed that online net gaming revenues for the third quarter and the full-year was expected to fall.
Entain shares tumbled by 12.05 per cent to 928.80p in early afternoon trading
The business had previously predicted that annual growth would be in the low to mid-single digits.
Jette Nygaard-Andersen, CEO of Entain, said: ‘We continue to see good underlying growth in our online business and are reiterating our EBITDA guidance for the year despite softer than expected revenue growth in Q3 and the ongoing roll-out of industry-leading safer gambling measures.
‘We continue to attract more customers than ever before to enjoy our products and services.’
Last week, data revealed that the percentage of online gamblers seeking support for problems related to slot games has almost doubled in the past five years.
Of those who disclosed difficulties with online gambling on the National Gambling Helpline last year, 60 per cent cited online slots as one of the main activities they struggled with – up from 34 per cent in 2018-19, according to data from the service’s operator, GamCare.
The findings come as the government consults on introducing maximum stake limits for online slot games.
Some 73 per cent of the 5,660 callers to the helpline last year said they had struggled with online gambling.
The spotlight on problematic gambling comes as countries around the world, including the UK, place stronger controls on the industry to protect consumers.
The British government recently laid out long-awaited plans to crack down on problem gambling with proposals that would see new limits on online stakes, increased affordability checks on customers and a new statutory levy on betting firms to fund research, education and treatment for problem gamblers.
Nygaard-Andersen added: ‘We have made significant changes to the group over the last three years. Our focus now is on accelerating the actions we are taking to drive sustainable organic growth, expand our margins, capitalise on the US opportunity and deliver long-term returns for our shareholders.
‘We remain confident in our ability to deliver on the vast opportunities ahead of us, and look forward to sharing more detail about the changes that we are making alongside our Q3 trading update in November.’
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