Entain has released its interim results for the first half of 2024, reporting a 6% increase in the group’s total net gaming revenue (NGR) year-on-year. This growth includes a 50% stake from BetMGM and reflects an 8% increase on a constant currency basis.
Tighter regulation in the UK and Ireland
The group’s performance was bolstered by stronger than expected profit margins during the European Championship and improved operational execution in the second quarter.
For the six months ending June 30, 2024, Entain reported group EBITDA of £524 million ($665 million), reflecting an increase of 5%. The company reported a 9% increase in online NGR excluding the US, with an 11% increase on a constant currency basis.
However, pro forma NGR, which includes adjustments for acquisitions and other factors, remained stable.
The UK and Ireland segment suffered a 6% decline, reflecting challenges in the regulatory environment and other market conditions. Despite this, the UK and Ireland online sector has seen a 12% increase in active customers and a stabilization in per capita spending year-to-date.
Entain performing well in Central Europe
International operations delivered a stronger performance, with a 10% increase in gross sales revenue on a constant currency basis. Brazil showed notable growth of 28% in gross sales revenue in the first half of the year.
The Central and Eastern Europe (CEE) region also performed well, with a 12% increase in pro forma NGR. Croatian SuperSport, part of Entain’s CEE operations, recorded a 17% increase, contributing to the positive results in the region.
Entain recently announced the appointment of Gavin Isaacs as CEO, effective September 2, 2024. Stella David will transition to the role of President on September 30, 2024.
The company also updated its full-year 2024 guidance, expecting group EBITDA to be between £1.04 billion and £1.09 billion. This revision reflects stronger than anticipated performance in the second quarter and adjustments to the timing of regulatory implementations in Brazil and the Netherlands.
Entain has more than £1.3 billion in cash reserves
BetMGM, a joint venture with MGM Resorts, has shown continued growth. The increase was 9% in net gaming revenue in the second quarter. Thus, the company’s market share remained stable at 13%.
Thus, more marketing investments are planned for the second half of 2024, especially targeting the NFL season and expanding its iGaming capabilities.
Therefore, Entain proposed an interim dividend of 9.3p per share, representing an increase of 5%. The company maintains a robust balance sheet, with net debt of £3.3 billion and cash reserves in excess of £1.3 billion as of June 30, 2024.
In summary, in Q1 2024, Entain reported a 3% increase in total group NGR. Growth was greatest in the CEE region, where NGR increased by more than 100%. However, the UK and Irish segments saw declines in online and retail NGR. This decline was mainly attributed to stricter laws in these countries and market conditions.
