Entain shares rose on Tuesday after the betting company reported an 11% gain in net gaming revenue for the first quarter.
Entain shares were over 2% higher at the time of writing.
A 76% jump in revenue from their US joint venture, BetMGM, will be particularly pleasing for investors looking to North America for growth.
The BetMGM JV has guided for up to $2bn net gaming revenue in the full year.
Overall online gaming revenue was helped higher by record user numbers, despite the ongoing cost of living concerns.
“The cost-of-living crisis can’t deter punters from enjoying a flutter across Entain’s suit of brands, including Ladbrokes and partypoker to name a couple. First quarter performance was strong, albeit mainly in line with market expectations, with active customer numbers reaching record levels,” said Matt Britzman, equity analyst at Hargreaves Lansdown.
“BetMGM, the US joint venture, continues to perform well and remains on track to deliver positive cash profit in the second half of this year.”
Britzman continued to explain the potential challenges for Entain’s UK business as the government finalises their new regulations.
“Back in the UK, the gambling industry waits patiently for news on what the new gambling regulation will look like. The white paper promised to shake up the current regulatory regime has been persistently delayed for almost three years now. Still, we could be closer to seeing something tangible toward the second half of this year.
“The delays mean the industry has had plenty of time to prepare, albeit the scope of changes to come are unknown, and Entain’s global presence makes it less exposed to potential issues than more UK-focused peers.”
A clampdown on UK betting advertising, including the recent ban on football clubs advertising betting firms, will likely curtail UK revenue growth in the coming years.