By Scott Kanowsky
Investing.com -- Entain PLC (LON:ENT) warned of regulatory headwinds in the current year, as the Ladbrokes owner saw income from its key online business slip in 2022.
Full-year online underlying earnings before interest, taxes, depreciation and amortization slipped by 8% to £828 million (£1=$1.885), which Entain said was due to regulatory changes in major markets, particularly in the United Kingdom. Financial checks in Britain have become increasingly strict ahead of a review of gambling rules by the U.K. government that is due out in the coming months.
Entain was also forced to shutter its operations in the Netherlands, while a surge in online gambling demand during the pandemic eased.
Online net gaming revenues dropped by 2% at constant currency, although Entain noted that it would have grown by around 3% excluding the impact of the closure of the Netherlands business and U.K. regulatory changes.
Meanwhile, group-wide adjusted earnings before interest, tax, depreciation and amortization climbed by 13% in the 12 months to the end of December to £993.2M, coming in at the top-end of guidance of £976.7M.
"As we look to 2023, while we continue to face some regulatory headwinds, we remain excited by the opportunities ahead," Entain said in a statement.
Analysts at Citi said the results were widely in line with forecasts. However, they added that this was unsurprising after the firm raised its annual profit outlook in February.
Shares in Entain dipped by more than 3% on Thursday.