Entain Q3 2022 Report: Expects to Turn Profitable in 2023

Entain released its Q3 2022 report today. It noted a strong net gaming revenue across the country. The group expects to reach sustainable profitability during 2023. Its American legal sports betting division, BetMGM, with which it has a 50% stake, recorded a year-on-year revenue gain of $400 million. It is the "clear leader in the iGaming sector" with 31% of the action.

Entain confirms full-year earnings guidance of $1.3 billion. Bet MGM had strong performances over the seasonally quiet July and August months. The successful start to the NFL season highlights the strength of BetMGM's growing US sports betting offer.

Entain CEO Nygaard-Andersen is optimistic about the launch of BetMGM's new app and the opening of the NFL season. The Group saw "fantastic" development in Q3, which delivered a "record number" of actives. Retail gaming also saw growth.

Entain has not abandoned California dream. Neither proposition 27 nor 26 will get sufficient votes to pass. If it doesn't happen in November this year, Entain will look at it again next year. Entains expects to turn profitable in 2023.

Entain will not go online in California this year. This will be a positive for the company's EBITDA. If California did come online, Entain would have invested significantly into growing the market.

The FIFA World Cup runs from November 20 to December 18. Rob Wood, Chief Financial Officer and Deputy CEO for Entain, spoke about the upcoming tournament. He likes the fact that there will be less Europeans on holiday during a Winter tournament, and that the fixture list is more congested.