Entain posts £460m loss for 2024
Restructuring costs kept the FTSE 100 gambling giant in the red despite a return to organic growth.
UK.- There were mixed results for FTSE 100-listed Entain Plc in 2024. The company saw a return to organic growth, but restructuring costs alongside impairments and write-downs meant it still posted a loss of £460m compared to a loss of £900m in 2023.
Revenue reached £5.16bn, up 7 per cent year-on-year. Group EBITDA hit £1.08bn with £941m from online and £261m from retail. But separate impairment charges totalled £476m, including for TAB NZ (£142m), BetCity.NL (£113m) and STS Poland (£75m). Meanwhile, £286m was logged for amortisation of assets and the write-down of intangible assets related to BetCity.nl, STS Poland, Ladbrokes Coral and SuperSport in Croatia.
As for restructuring costs, the upgrade of US systems under Project Romer was the major outlay. This saw Entain’s share of losses from the BetMGM joint venture with MGM Resorts increase to £109m. It expects the venture to become profitable this year.
Entain’s interim CEO Stella David said: “While 2024 was a year of transformation and strong operational progress, we also faced necessary adjustments in response to regulatory changes and market conditions.
“We have taken a disciplined approach in reassessing the value of assets in markets where conditions have changed, ensuring we remain agile and focused on long-term value creation. Despite these adjustments, our core business is delivering solid growth, and we remain confident in our ability to generate significant cash flow and shareholder value in the years ahead.”
In the UK and Ireland, Entain returned to organic growth by year end. The Ladbrokes Coral retail unit managed to maintain net gaming revenue of £1.06bn, but underlying UK and Ireland EBITDA fell by 7 per cent to £437m.
David said: “Returning to growth in Entain’s largest market was a cornerstone of the Group’s overall performance and strategic success. The turnaround of our UK & Ireland Online growth was critical to the Group’s performance during 2024 and demonstrates the success of our decisive actions. UK & Ireland Online NGR was up +2% versus the prior year and, importantly, returned to year-on-year growth sooner than anticipated.”
Entain’s International Unit reported NGR of £2.64bn, a rise of 6 per cent year-on-year. It generated EBITDA of £594m. The new Brazilian market saw NGR rise by 41 per cent as active customers increased by 42 per cent.
David said: “Our international markets continue to demonstrate strong momentum, with Brazil and Georgia leading the way in growth. While regulatory changes in Belgium and the Netherlands required impairments, our core markets remain well-positioned for long-term growth. We have taken decisive actions to optimise performance and remain confident in our ability to drive shareholder value in these key regions.”
For 2025, Entain forecasts mid-single-digit growth in online NGR. However, the company continues to face uncertainty following the surprise resignation of Gavin Isaacs after just six months as CEO. The company is also reportedly being sued by former CEO Kenny Alexander and former chairman Lee Feldman in relation to the alleged Turkish bribery offences that led to a £585m settlement with HMRC in November 2023. The controversy over Alexander’s leadership also led to him being dropped as a candidate to lead 888 Holdings (now Evoke).
