Entain, a global leader in sports betting and gaming, has revealed strong financial performance for the first half of 2024. The company’s net gaming revenue (NGR) surged by 6% year-on-year to £2.56 billion ($3.24 billion), marking a notable increase from the previous year.
Entain’s online NGR grew by 9%, excluding the U.S., thanks to a 13% rise in active customers. This growth was driven by impressive performances in international markets. In constant currency terms, the company saw a 10% increase in NGR. Brazil emerged as a standout with a remarkable 28% rise in NGR, while Australia experienced stable growth. However, the UK & Ireland reported a 6% decline in NGR, primarily due to regulatory changes and a weaker retail sector.
The Central and Eastern Europe (CEE) region also contributed positively, with a 12% increase in pro forma NGR. Notably, SuperSport in Croatia, part of Entain’s CEE operations, reported a 17% boost in NGR, further enhancing the region’s performance.
Financial Performance and Strategic Developments
Entain’s financial results include a narrowed net loss after tax of £47 million ($60 million), a significant improvement from last year’s loss of £502.5 million ($637 million). The group’s EBITDA rose by 5% to £524 million ($664 million), with online EBITDA reaching £445 million ($564 million). However, retail EBITDA saw a decline of 11%, totaling £140 million ($177 million).
In the U.S., BetMGM, Entain’s joint venture, continued its upward trajectory with a 9% increase in Q2 NGR. The joint venture has maintained a stable 13% market share and is expected to benefit from additional investments in the latter half of the year.
Entain also announced a proposed interim dividend of 9.3p per share, reflecting a 5% increase from the previous year. The company successfully repriced its term loan debt and added £600 million ($760 million) to its available cash, strengthening its balance sheet with net debt at £3.33 billion ($4.2 billion).
Looking forward, Entain has upgraded its full-year guidance, expecting group EBITDA to range between £1.04 billion and £1.09 billion ($1.31 billion – $1.38 billion). This optimistic forecast is attributed to stronger-than-expected Q2 performance and revised regulatory implementation schedules in Brazil and the Netherlands.
Stella David, Interim CEO & Chair Designate, expressed satisfaction with the progress, stating, “Entain’s H1 results are clear evidence that our hard work improving the group’s operational performance is bearing fruit. Whilst there is more work to do, we are pleased with the progress so far and look forward to building further on these solid foundations in H2 and beyond.”
Looking ahead, Gavin Isaacs will take over as CEO on September 2, 2024, with Stella David transitioning to Chair on September 30, 2024. David added, “Our focused execution underpins the group’s performance so far this year, and we are excited by the opportunities ahead.”
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