(Reuters) -British gambling firm Entain reported a 6% rise in third-quarter net gaming revenue and reiterated its annual profit forecast on Wednesday, supported by growth in its U.S. joint venture BetMGM and online gaming.
Entain has benefited from an accelerating shift towards online gaming and sports betting, especially through its BetMGM joint venture with MGM Resorts in the U.S., even as concerns mount over potential tax hikes in the UK and a weak momentum in its retail operations.
On Tuesday, BetMGM raised its annual revenue and profit forecasts for the third time this year and said it expected to return at least $200 million to its owners before the end of the year.
Stella David, who took over as Entain CEO in April, said the company was “increasingly confident” in generating more than 500 million pounds ($668.15 million) of annual cash from 2028, given the growth in Entain and BetMGM.
The company reiterated its annual core profit expectations of between 1.10 billion pounds and 1.15 billion pounds, despite softer margins in September due to favorable outcomes for customers in sports betting.
Entain, which owns the Ladbrokes, Coral and Partypoker brands, expects its online net gaming revenue to increase about 7% on a constant currency basis for the year ending December.
Smaller rival Rank Group reported a 9% rise in like-for-like net gaming revenue for its first quarter on Wednesday, but noted that speculation around potential tax changes in the upcoming UK autumn budget is casting a shadow over the business.
($1 = 0.7483 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Subhranshu Sahu)
