Entain has released its interim results for the first half of 2024, showcasing a 6% year-on-year increase in total group net gaming revenue (NGR). This growth, which includes a 50% share of BetMGM, represents an 8% increase on a constant currency basis.
The group’s performance was significantly bolstered by stronger-than-expected win margins during the UEFA Euro Championship and improved operational execution in the second quarter.
Financial Performance Overview
For the six months ending 30 June 2024, Entain reported a group EBITDA of £524 million ($665 million), marking a 5% increase. The company saw a 9% rise 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 flat.
Segment Performance
UK and Ireland
The UK and Ireland segment experienced a 6% decline in NGR, reflecting challenges in the regulatory environment and other market conditions. Despite this, the UK and Ireland online sector reported a 12% increase in active customers and a stabilization in spend per head year-to-date.
International Operations
International operations showed stronger performance, with a 10% increase in NGR on a constant currency basis. Brazil delivered a notable 28% growth in NGR for the first half of the year. The Central and Eastern Europe (CEE) region also performed well, with a 12% increase in pro forma NGR. Croatia’s SuperSport, part of Entain’s CEE operations, reported a 17% increase, contributing to the positive results in the region.
Leadership Changes and Future Outlook
Entain recently announced the appointment of Gavin Isaacs as CEO, effective 2 September 2024. Stella David will transition to the role of Chair on 30 September 2024.
Upgraded Full-Year Guidance
The company has upgraded its full-year 2024 guidance, expecting group EBITDA to be between £1.04 billion and £1.09 billion. This revision reflects the stronger-than-anticipated performance in the second quarter and adjustments in the timing of regulatory implementations in Brazil and the Netherlands.
BetMGM Joint Venture
BetMGM, a joint venture with MGM Resorts, has shown continued growth, with a 9% increase in net gaming revenue in the second quarter. The company’s market share remained stable at 13%. Further investment in marketing is planned for the second half of 2024, particularly targeting the NFL season and expanding its iGaming capabilities.
Dividend and Financial Health
Entain has proposed an interim dividend of 9.3p per share, representing a 5% increase. The company maintains a robust balance sheet, with net debt of £3.3 billion and cash reserves exceeding £1.3 billion as of 30 June 2024.
Q1 2024 Performance Recap
In the first quarter of 2024, Entain reported a 3% increase in total group NGR, with notable growth in the CEE region, where NGR rose by over 100%. However, the UK and Ireland segments saw declines in both online and retail NGR, attributed to regulatory challenges and market conditions.
Conclusion
Entain’s H1 2024 results highlight a strong performance driven by strategic operational improvements and favorable market conditions during significant events like the UEFA Euro Championship. Despite facing challenges in certain segments, the company’s robust financial health, leadership changes, and strategic investments position it well for continued growth and stability.
