Entain has released its interim results for the first half of 2024, reporting a 6% increase in total group net gaming revenue (NGR) year-on-year. This growth includes a 50% share of BetMGM and reflects an 8% increase on a constant currency basis.
The group's performance was reportedly bolstered by stronger-than-expected win margins during the UEFA Euro Championship and improved operational execution in the second quarter.
For the six months ending 30 June 2024, Entain reported a group EBITDA of £524m ($665m), reflecting a 5% increase. The company saw a 9% rise in online NGR, excluding the US, with an 11% increase on a constant currency basis.
However, pro forma NGR, which includes adjustments for acquisitions and other factors, remained flat.
The UK and Ireland segment experienced a 6% decline, reflecting challenges in the regulatory environment and other market conditions. Despite this, the UK and Ireland online sector reported a 12% increase in active customers and a stabilisation in spend per head year-to-date.
International operations showed stronger performance, with a 10% increase in NGR on a constant currency basis. Brazil delivered a notable 28% growth in NGR for the first half of the year.
The Central and Eastern Europe (CEE) region also performed well, with a 12% increase in pro forma NGR. Croatia's SuperSport, part of Entain’s CEE operations, reported a 17% increase, contributing to the positive results in the region.
Entain recently announced the appointment of Gavin Isaacs as CEO, effective 2 September 2024. Stella David will transition to the role of Chair on 30 September 2024.
The company has also upgraded its full-year 2024 guidance, expecting group EBITDA to be between £1.04bn and £1.09bn. This revision reflects the stronger-than-anticipated performance in the second quarter and adjustments in the timing of regulatory implementations in Brazil and the Netherlands.
BetMGM, a 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 remained stable at 13%. Further investment in marketing is planned for the second half of 2024, particularly targeting the NFL season and expanding its iGaming capabilities.
Entain has proposed an interim dividend of 9.3p per share, representing a 5% increase. The company reportedly maintains a robust balance sheet, with net debt of £3.3bn and cash reserves exceeding £1.3bn as of 30 June 2024.
In the first quarter of 2024, Entain reported a 3% increase in total group NGR, with notable growth in the CEE region, where NGR rose by over 100%. However, the UK and Ireland segments saw declines in both online and retail NGR, which were attributed to regulatory challenges and market conditions.
