Although revenue increased significantly, Entain’s FY24 financial report also notes difficulties with operational profit. Net gaming revenue (NGR), excluding the U.S., increased 7% year over year to $5.16 billion ($6.66 billion), and gross profit increased 7% to $3.12 billion. In the meantime, underlying EBITDA increased by 8% to £1.09 billion.
At £616.6 million, the underlying operational profit, however, decreased 4% from the previous year. In spite of this, post-tax losses decreased dramatically to £461 million from £878.7 million the year before. The report was well received by stock prices, which at the time of writing had increased by more than 27% to 772.8 GBp.
BetMGM and International Markets Drive Growth
BetMGM, Entain’s joint venture with MGM Resorts, delivered $2.1 billion in net revenue, reflecting a 7% year-over-year increase. The brand holds a 22% market share in iGaming and 8% in online sports betting. Entain’s 50% stake in BetMGM contributed to a 6% NGR growth (4% on a proforma basis).
Internationally, Entain saw £2.57 billion in revenue, up 6% year-over-year. Sports betting revenue increased by 8% to £1.52 billion, while gaming revenue rose 1% to £1.04 billion. Sports wagers reached £12.38 billion, reflecting a 3% increase. The most notable international gain came from Brazil, where online NGR soared 41% after the country’s gambling market became regulated. Other key markets include Georgia (+13% NGR) and the Netherlands (-13% NGR on a proforma basis). Australia, Italy, and New Zealand saw modest gains of under 5%, while Germany remained flat.
With no year-over-year rise in NGR, Entain’s UK and Ireland segment was steady. The annual performance of FY24 was balanced by a 7% gain in the second half after a 6% decline in the first half. Retail revenue decreased by 1%, whereas online NGR rose by 2%. Additionally, the business recorded an 11% increase in active clients.
The largest growth was seen in the CEE (Central and Eastern Europe) segment, which includes Poland and Croatia. While sports NGR increased 92% and gaming NGR increased 12%, sports wagers increased 76% to £1.58 billion. At £488 million, the segment’s NGR increased by 62% overall. Underlying operating profit jumped 34% to £152.9 million, while gross profit increased 54% to £278.9 million.
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