Entain plc, a global leader in sports betting and gaming, has released its interim results for the first half of 2024, ending on 30 June. The report showcases a robust performance with Total Group Net Gaming Revenue (NGR) increasing by 6%, and an 8% rise on a constant currency basis, inclusive of a 50% share from BetMGM. Notably, the Online NGR outside the US saw a surge of 9%, or 11% when adjusted for constant currency, highlighting a period of significant growth and operational improvement.
Operational excellence driving growth:
As Entain publishes, the company’s EBITDA for the first half stood at £524 million, marking a 5% increase from the previous year, driven by stronger-than-expected win margins during the UEFA Euro Championship and enhanced operational execution. The results reflect an admirable Q2 performance with the proforma performance of Online NGR transitioning from a 2% decline in Q1 to a 5% increase in Q2. Notably, Brazil reported a striking 28% growth, emphasizing the effectiveness of Entain’s strategic initiatives.
Further operational efficiencies were realized through Project Romer, which has now increased its net savings target to £100 million by 2026, up from the initial £70 million. This initiative has been pivotal in driving margin expansion across the group.
The upcoming appointment of Gavin Isaacs as CEO on 2 September 2024, with Stella David succeeding as Chair at the end of September, marks a strategic leadership transition aimed at continuing the positive momentum. Under their forthcoming leadership, Entain is poised to further capitalize on its operational strengths.
According to Gambling Insider, Reflecting on the robust first half, Interim CEO & Chair Designate Stella David noted, “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.”
Regional highlights and future outlook:
Internationally, Entain’s performance was strong, particularly in Brazil and the Central and Eastern Europe region, with the latter seeing a 12% increase in proforma NGR. Croatia’s SuperSport stood out with a 17% increase, contributing significantly to the region’s positive results.
Looking ahead, Entain has upgraded its full-year 2024 guidance, now anticipating group EBITDA to be between £1.04 billion and £1.09 billion. This revision reflects a more favorable second quarter than initially expected and adjustments in the timing of regulatory implementations in Brazil and the Netherlands.
BetMGM continues to perform well, delivering sequential quarterly revenue growth and maintaining a stable market share. Planned investments in the second half of the year aim to leverage the upcoming NFL season and enhance iGaming offerings, ensuring sustained growth and market presence.
Entain has declared an interim dividend of 9.3p per share, up 5%, underscoring its financial health and commitment to shareholder returns. With a solid balance sheet, net debt at £3.3 billion, and cash reserves of over £1.3 billion as of 30 June 2024, Entain is well-positioned to navigate future challenges and seize growth opportunities.