Entain Shares Drop 2%, As FTSE 100 Gambling Giant's Sales Slow

Core Insights - Entain's shares fell 2% following the announcement of slowing sales outside of its BetMGM division, with total net gaming revenue (NGR) rising 6% in Q3, down from 10% in the first half of 2025 [2][6] Group Performance - Total NGR for Q3 increased by 6%, or 7% on a constant currency basis, including a 50% stake in BetMGM [2] - Excluding BetMGM, NGR improved by 4% at headline level and 5% at stable exchange rates [3] - Online NGR outside the US rose 5% at headline level and 6% at constant currencies, despite adverse sports results impacting growth by 1-2 percentage points [3][4] Regional Performance - In the UK and Ireland, NGR at constant currencies rose 8%, driven by increased player values and market share gains [4] - Online NGR in the UK and Ireland increased by 15%, while retail NGR grew by 2% [4] - International NGR (excluding BetMGM) rose 1%, with online NGR up 1% and retail NGR improving by 6% at constant currencies [4] Specific Markets - In Brazil, adverse sports margins led to an 11% decline in sales [5] - Australian NGR fell by 6% at stable currencies, while Italian NGR rose by 6% [5] - Double-digit online NGR growth was reported in Georgia, New Zealand, Spain, Canada, Austria, and Greece [5] BetMGM Performance - BetMGM reported a 23% year-on-year increase in net revenues for Q3, reaching $667 million [6] - The joint venture is projected to deliver net revenue of $2.75 billion in 2025, an upgrade from previous guidance [6] Future Guidance - Entain maintains its guidance for online NGR to rise 7% at constant currencies and mid-single digits on a reported basis [8] - Group EBITDA estimates remain unchanged at £1.1 billion to £1.15 billion, with earnings of £1.09 billion in 2024 [8]