Entain has unveiled its interim results for the first half of 2024, showcasing a robust financial performance and strategic progress. The company reported a 6% year-on-year increase in total group net gaming revenue (NGR), including a 50% share of BetMGM. On a constant currency basis, this growth rises to 8%, underscoring the strength of Entain’s operational and market positioning.
Strong Financial Performance
For the six-month period ending June 30, 2024, Entain achieved a group EBITDA of £524 million ($665 million), reflecting a 5% increase from the previous year. This growth was supported by a 9% rise in online NGR, excluding the US, and an 11% increase on a constant currency basis. Despite these positive figures, pro forma NGR—adjusted for acquisitions and other factors—remained flat, indicating stable performance in the context of ongoing adjustments.
UK and Ireland Challenges
The UK and Ireland segment faced a 6% decline in NGR due to regulatory challenges and market conditions. However, there were positive developments within the online sector in this region, with a 12% increase in active customers and a stabilization in spend per head year-to-date. These trends suggest resilience amid broader regulatory pressures.
International Growth
Entain’s international operations demonstrated strong performance, with a 10% increase in NGR on a constant currency basis. Brazil stood out with an impressive 28% growth in NGR for the first half of the year, highlighting the company’s successful expansion in emerging markets. The Central and Eastern Europe (CEE) region also contributed positively, with a 12% increase in pro forma NGR. Notably, Croatia’s SuperSport, part of Entain’s CEE operations, reported a 17% increase, enhancing the overall regional performance.
Strategic Developments and Leadership Changes
In a notable strategic move, Entain has appointed Gavin Isaacs as CEO, effective September 2, 2024. Stella David will transition to the role of Chair on September 30, 2024. This leadership change is expected to bring fresh perspectives and strategic direction to the company.
Furthermore, Entain has revised its full-year 2024 guidance, now forecasting group EBITDA to be between £1.04 billion and £1.09 billion. This adjustment reflects a stronger-than-expected performance in the second quarter and the timing of regulatory implementations in Brazil and the Netherlands.
BetMGM’s Continued Growth
BetMGM, Entain’s 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 remains stable at 13%. Entain plans to increase investment in marketing during the second half of 2024, focusing on the NFL season and expanding its iGaming capabilities, which is expected to further drive growth.
Dividend and Financial Stability
Entain has proposed an interim dividend of 9.3p per share, representing a 5% increase from the previous year. The company’s financial stability is highlighted by a strong balance sheet, with net debt of £3.3 billion and cash reserves exceeding £1.3 billion as of June 30, 2024. This financial strength supports ongoing investments and strategic initiatives.
First Quarter Performance
In the first quarter of 2024, Entain reported a 3% increase in total group NGR. The CEE region experienced exceptional growth, with NGR rising by over 100%. However, the UK and Ireland segments saw declines in both online and retail NGR, attributed to regulatory challenges and market conditions.
Entain’s interim results for H1 2024 reflect a period of substantial growth and strategic advancement. The company’s ability to navigate regulatory challenges while achieving notable international expansion underscores its resilient business model. With leadership changes and strategic investments on the horizon, Entain is well-positioned to continue its growth trajectory and capitalize on emerging market opportunities in the second half of the year.