Entain beats expectations for H1
The gambling group has raised its forecast after strong first-half results.
UK.- The FTSE-listed gambling group Entain Plc has upped its full-year forecast following strong first-half performance. Group net gaming revenues (NGR) for H1 rose by 6 per cent year-on-year on a constant currency basis to £2.63bn.
Revenue from the BetMGM US joint-venture with MGM Resorts rose by 35 per cent to $1.35bn, while US EBITDA rose from negative $123m in the first half of 2024 to positive $109m. Igaming revenue was up by 28 per cent and online sports betting by 61 per cent despite no new state launches.
At home in the UK and Ireland, NGR was up 9 per cent at £1.09bn thanks to a 21 per cent rise in online revenues, with sport betting’s contribution up 16 per cent and igaming up 23 per cent. Ladbrokes Coral retail revenue dropped by 2 per cent.
International revenue was up 3 per cent in constant currency at £1.29bn, boosted by Brazil (up 21 per cent) and Italy (up 7 per cent). NGR was down by 7 per cent in Australia but up 12 per cent in New Zealand.
Entain CEE, the business focusing on Central European markets, generated £253.8m, up 5 per cent, driven by growth in Croatia and Poland.
Entain’s underlying EBITDA for H1 was £583.4m, up 11 per cent year-on-year, driven by double-digit growth in the UK & Ireland. Including its share of BetMGM, group EBITDA was up by 32 per cent to £625.5m.
However, the group’s reported loss deepened from £5.6m to £116.9m. Contributions to this included £131m of amortisation costs on acquired intangibles, a £47.7m provision linked to AUSTRAC proceedings in Australia, £35.1m in restructuring costs. The group also recorded £87m in foreign exchange losses, as compared to a £90.4m gain last year.
Entain CEO Stella David said: “This performance reinforces our confidence in driving sustainable underlying growth and generating more than £0.5bn of cash annually in the medium term. Our business is getting stronger, fitter and faster – and we are well positioned to capitalise on the significant opportunities ahead.”
She added: “Our transformation journey is well underway, gathering pace and supported by our high-quality portfolio of iconic brands. The actions we have taken are working. We have rebuilt momentum in the UK, executed a flawless Day One launch in Brazil’s regulated market, and BetMGM is delivering strong and profitable growth in the US.
“We remain committed to expanding margins, growing market share and ensuring our customers enjoy the best and safest experiences in the industry. With this foundation, I am confident we can return Entain to its winning ways.”
