Sports betting and gaming group Entain‘s results improved in the first half of the year but ongoing investments and regulatory changes are still impacting the group’s bottom line.
For the first half of 2024, Entain’s total Group Net Gaming Revenue (NGR), including its 50 percent share of BetMGM, rose by 6 percent year-on-year and 8 percent on a constant currency basis.
Online NGR, excluding the US, increased by 9 percent year-on-year, with a 1 percent increase on a proforma basis.
Group EBITDA reached £524 million ($660.24 million), marking a 5 percent increase compared to the previous year.
The group reported a net loss after tax of £47 million ($59.22 million), reflecting ongoing investments and regulatory impacts, but a considerable reduction from the £502.5 million ($638.4 million) in net losses in the same period of last year.
Operationally, Entain Online NGR increased by 5 percent year-on-year, supported by strong performances in Brazil and other international markets.
The Project Romer efficiency initiative has increased the net savings target to £100 million ($126 million) by 2026, up from the previous £70 million ($88.2 million). BetMGM continued its positive momentum, delivering sequential quarterly revenue growth and stabilizing market share.
In specific segments, UK and Ireland NGR declined by 6 percent, reflecting regulatory challenges but showing signs of recovery with improving player key performance indicators (KPIs).
International markets saw a 10 percent increase in NGR, with particularly strong performances in Brazil and Australia. The Central and Eastern Europe (CEE) region experienced a surge in NGR by 126 percent, driven by strong results in Croatia and other markets.
Looking ahead, Entain has upgraded its FY24 guidance, expecting Group EBITDA to be in the range of £1 billion ($1.3 billion). This positive outlook is underpinned by a stronger than expected 2Q24 performance and revised regulatory implementation timing in Brazil and the Netherlands.
The group commented it would have a proactive approach to addressing regulatory challenges, including plans to simplify business operations and achieve substantial savings.
“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”, Stella David, Interim CEO, commented.
Gavin Isaacs will join as Chief Executive Officer on September 2nd, 2024, while Stella David will succeed Barry Gibson as Chair on September 30th, 2024.
