(Reuters) - Entain (LON:ENT) on Thursday lowered its profit margin forecast for the year after it posted a drop in gaming revenue in the third quarter, hurt by adverse sporting results and regulatory pressures, sending shares of the company down 5%.
The owner of Ladbrokes and Coral betting shops as well as bwin and partypoker online brands said its expected online core profit margin to be about 25% in 2023, down from the 27.1% last year.
Gambling firms, which gained from a rise in online betting during the pandemic, are dealing with stiffer regulations and a cost-of-living crisis.
Sporting results on which there were higher numbers of winning bets have hit core profit by about 45 million pounds ($54.80 million) in 2023, the company said, but added that it expects online net gaming revenue to return to growth on a pro-forma basis in 2024.
It now sees 2024 online gaming revenue growing in low single percentage digits.
Entain's online net gaming revenue on a pro forma basis was down 6% for the three months ended on Sept. 30.
($1 = 0.8212 pounds)